WRITTEN QUESTION P-3372/00

by Antonios Trakatellis (PPE-DE) to the Commission

(25 October 2000)

Subject: State aid and the rescue of Olympic Airways AE

Reports in the Greek and international press state that in spite of the special treatment given in compliance with Community rules and in spite of the rescue opportunity offered by the submission in 1994 of a restructuring plan and, after that plan had failed, the submission of a second revised restructuring plan in 1998, Olympic Airways AE now finds itself in a state of insolvency.

In view of the fact that the Greek Government was responsible for the planning and execution of the two rescue plans for the company in question:

1. Which of the preconditions and commitments in Decision 1999/332/EC(1) on aid granted by Greece to OA AE did the Greek Government not adhere to?

2. Did Greece submit the report to the Commission it was required to at the end of October 2000 on fulfilment of all the conditions imposed on it in order to secure the compatibility of the aid and the implementation of the restructuring plan? What findings have been made regarding achievement of the expected results as regards the cost and productivity ratios set out in the above decision?

3. Has the second instalment been paid in full even though the conditions have not been fulfilled and the objectives of the revised plan have not been achieved, and is there any opportunity for submission by the Greek authorities and approval by the Commission of a third restructuring plan for the company? If so, what would the timetable be?

4. Who is responsible for the destruction, commercial losses and administrative disintegration of the company and for the squandering of Greek public money through the creation of deficits at the expense of taxpayers in Greece?

5. What is the amount of State aid received by the company in all forms over the last eight years and what financial costs have the company's operating deficits had for the Greek economy over the same period?

6. Are Commission departments considering bringing a charge against OA for distortion of competition or abuse of their dominant position in the air transport sector?

(1) OJ L 128, 21.5.1999, p. 1.

Answer given by Mrs de Palacio on behalf of the Commission

(30 November 2000)

The Commission approved in 1994 an aid package for Olympic Airways totalling more than GRD 500 000 million for the purpose of implementing a restructuring plan and subject to a number of conditions. The same aid was reauthorized in 1998 together with a revised restructuring plan.

The Commission is kept informed of the difficulties that Olympic Airways has been facing and of the intention of the Greek government to privatize the company. However, the report monitoring compliance with the conditions attached to Commission Decision 1999/332/EC of 14 August 1998 on aid granted by Greece to Olympic Airways, has not yet been submitted. Instead, the Greek government has asked the Commission to suspend taking a decision on the payment of the last instalment of capital increase in the amount of GRD 7 800 million.

The Commission will review the company's restructuring plan under the state aid rules. In this context, any possible anti-competitive implications of continued government support or preferential treatment for Olympic Airways would have to be considered.