Olympic liquidation is ready for takeoff

The government is expected to prepare this week the legal framework that will allow it to sell off Olympic Airlines (OA) bit by bit, a government source told Sunday’s Kathimerini, after last week’s EU decision ordering the airline to pay back state aid dented its hopes of successful privatization. The Finance Ministry is working on a draft bill that will pave the way for OA’s liquidation in operation, with the government selling its assets while maintaining its services, the source said. The EU last week ordered Greece to recover more than 500 million euros in illegal state aid paid to OA by the previous socialist government. The decision is seen as hurting the chances of a successful privatization for the loss-making airline, currently in an initial phase. Greece last month signed a preliminary agreement to sell the airline to a consortium of Greek-American investors. The draft bill being prepared will also foresee what will happen to OA’s 8,000-strong workforce, the source said, without giving any further details.

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