FROM DIALOG NEWSEDGE
[Agence France-Presse English Wire]
The new airline company planned to succeed the financially troubled national carrier Olympic Airlines will be ready by October, the Greek government said Sunday.
Greece's minister of economy and finances, Georges Alogoskoufis, said in an interview with the daily Eleftherotipia, the government needed to discuss the plans for the new company with the European Union, at a meeting set for Tuesday in Brussels.
The minister said the government was satisfied with the plan under discussion, but that now they had to make sure there was a "normal succession" in forming the new airline company to replace Olympic, which "requires sensitive talks with the European Union," he said.
Alogoskoufis said at present "the plans -- industrial, operational and aerial -- have been completed and presented to the EU, the Greek and foreign investors, and are credible and have taken into account their interests."
The work remaining on forming the new company will not be finished "before the end of the summer, that is, before next October," he added.
He also said the government wanted to preserve the "Olympic" brand name.
The EU transportation commissioner, Jacques Barrot, in early March gave Greece an additional month to prepare for talks about the new airline with Brussels.
The new company is expected to be smaller than the current Olympic Airlines, and will be held by a majority of private shareholders, and not the state, Barrot said.
The Greek government has made five seperate attempts since 2001 to privatise the national airline, which was started by shipping magnate Aristote Onassis in 1956.
The European Commission ordered Olympic Airlines to repay a total of 700 million euros (850 million dollars) in illegal state aid.
In November, a law was passed creating the current planned successor to Olympic dominated by private ownership.
Copyright (c) 2006 Agence France-Presse
Copyright (c) 2006 Dialog Newsedge
