Source Pravda.Ru

Repayment of Olympic Airlines aid, to bankrupt Greek carrier

The European Commission is to rule Wednesday on whether Greek national carrier Olympic Airlines must repay illegal government subsidies, a move that could cripple the company.

The Greek government already has said the commission would likely demand that the carrier returns some Ђ500 million (US$610 million) in aid dating back to the beginning of the decade.

The 25-nation EU wants to limit state handouts to airline carriers as much as possible to create a level playing field in the business.

Earlier this year, the European Court of Justice ruled the Greek government had made insufficient efforts to recover Ђ41 million (US$50.33 million) in restructuring aid and Ђ153 million ($188 million) in new operating aid given to Olympic Airways, reports the AP.