WRITTEN QUESTION P-0044/01

by Antonios Trakatellis (PPE-DE) to the Commission

(16 January 2001)

Subject: Privatisation of Olympic Airways

Given the Greek government's plan to privatise Olympic Airways by declaring it bankrupt and dividing it into two companies, one inheriting the assets, the other the liabilities, and in view of the information I have received in response to a previous question that the Commission is scrutinising the OA restructuring programme submitted by the Greek authorities to ensure compliance with the rules governing state aid based on Article 88 of the Treaty of Amsterdam, will the Commission say:

1. Was it notified in good time about the privatisation plan and accompanying measures to salvage and restructure OA as a company in financial difficulties before this plan was authorised, in accordance with the rules on state aid?

2. To what extent are the restructuring aid, the contributions in capital, the cancellation of debts, the loans, the tax reductions or reduced social security contributions and the loan guarantees proposed by the Greek government in this plan compatible with the rules of the single market?

3. Given that the Greek State as shareholder will be selling its shares when OA is sold off, what preconditions must this sale meet if it is not to be seen in part as state aid, according to the Commission's special rules and guidelines governing air transport(1), and has the company been assessed by an independent expert who is required, under normal conditions, to demonstrate to the Commission the value of the company as a going concern and, if the Commission should consider this essential, its value after liquidation?

4. Has it been provided with a report specifying the sale value, or values, so as to enable it to determine the real level of aid granted?

5. Is the Commission demanding the repayment of OA debts that are due, and how much do these amount to?

6. What view does it take of the loan of GRD 16 billion to OA to move to the new airport of Spata, given that there are increasing indications that it is unable to go ahead with this move and to pay for work undertaken?

(1) Communication of the Commission (OJ C 350, 10.12.1994).

Answer given by Mrs de Palacio on behalf of the Commission

(16 February 2001)

At present, the process of privatising Olympic Airways is still only at the preliminary stage and has not yet been the subject of a notification to the Commission. Nevertheless, the Commission is in close contact with the Greek authorities on this matter. Given that nothing is known at the moment either about the results of the call for tenders or about the precise procedures for privatising the undertaking, it would at this stage appear premature, to say the least, to make any pronouncements about the existence of possible aid and about the compatibility of such aid with the common market. However, the Commission intends to apply the Civil Aviation Aid Guidelines to which the Honourable Member alludes.

Lastly, with regard to the transfer of Olympic Airways' activities to the airport of Spata, the Commission has notified the Greek authorities, by letter of 10 November 2000, of its decision to authorise the use of State guarantees to finance a part of this transfer in the form of loans.