Brussels, 14/09/2005 (Agence Europe) - On 14 September, the Commission presented its conclusions on the investigation procedure which was opened on 16 March 2004 into the details of the creation of the new airline Olympic Airlines, an offshoot of Olympic Airways, in December 2003. After an in-depth investigation into the state of the finances of Olympic Airways and Olympic Airlines for 18 months, the Commission noted that since December 2002, both companies had benefited from illegal advantages of a sum in excess of 540 million EUR. This aid consists of: -the State picking up the tab for a proportion of the aircraft hire costs for Olympic Airlines (estimated at 40 million EUR); -the unjustified payment of at least 90 million EUR to Olympic Airways by the State, when Olympic Airlines was set up and being transferred to the State; -the State paying for the financial obligations of Olympic Airways (banking charges, aircraft hire), to the tune of 60 million EUR; -the State's tolerance of the non-payment of over 350 million in tax and social debts on the part of Olympic Airways. Stressing that this was illegal aid and that the figures are indicative, the Commission intends to ensure "greater visibility for private investors, who will now be able to make decisions in full knowledge of all the facts".
This is the fifth decision the Commission has taken in 10 years relating to the Greek company, the first three of which were positive, the Commissioner for Transport, Jacques Barrot, told the press on Wednesday. The Commission had authorised the Greek government to pay State aid for the restructuring of Olympic Airways between 1994 and 2000, but this restructuring had been postponed for too long. On 11 December 2002, the Commission stated that additional aid, which on this occasion was judged incompatible with Community rules, had been granted to Olympic Airways, and the company was ordered to pay back a total of 160 million EUR for violation of the principle of single aid ("one time, last time"). Not only was Olympic airlines found to be in breach of the Commission's decision, but in the meantime, the Greek government has adopted a law including the transfer of the staff and most of the assets of the former company Olympic Airways to the new company, Olympic airlines, with Olympic Airways keeping most of the liabilities. In a ruling returned on 12 May 2005 (C-415/03), the Court of Justice reminded Greece in its obligations, having noted that the details of this transfer were in breach of the effective execution of the decision of the Commission and ordering the reimbursement of the aid used by the Greek State to support the company's commercial activities.
The exact sum of the fine decided on has not yet been revealed, but it has been put in the region of 150 million EUR, which comes on top of the 160 million already owed under the first decision of December 2002. The Commission must now look at what exactly constitutes state aid of the resources used to the advantage of both companies. Furthermore, the final sum total demanded by the Commission will depend on negotiations with the Greek authorities, particularly in terms of the tax and social debts. "We may be able to look at staggering the payment, but the Court of Justice will be there to call the parties to order. Greece must show that it has come into line with the decision of the Court [of May 2005: Ed], otherwise the Commission will be able to launch infringement proceedings", said Jacques Barrot. Greece now has two months to come into line with the Commission's decision.