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Economy

Greece to Support Aegean Airlines with 120 Million Euros

November 23, 2020

ATHENS — "In a comprehensive plan, based on the equitable sharing of burdens between the state and private shareholders, the government will support Aegean, the largest air carrier in our country, which is impacted by the effects of the pandemic on social and economic activity and in particular travel and tourism," government spokesperson Stelios Petsas said on Monday.

"The state support plan of the airline sets as an integral part the capital increase of Aegean with the participation of its shareholders. It is already being evaluated to ensure formal approval by the competent authorities of the European Commission. It is noted that the decision of the government is compatible with the European framework of state aid to companies and sectors affected by the pandemic, such as the aviation sector," he added.

He pointed out that "this is essentially a plan to strengthen the largest domestic airline, which resembles cases of state support of other major European airlines with the contribution of the state, but at the same time ensures the significant participation of private funds. At the same time, the Greek State will receive special options, in the form of warrants, for the purchase of shares in the company, which it will be entitled to exercise under specific conditions and for a certain period of time."

As he said, the total amount of state support is expected to reach 120 million euros, an amount much lower than the support, worth more than 32 billion euros, which other European aviation companies have received or are about to receive. In addition, private participation is foreseen to be equal to half that of the state aid, ie 60 million euros as opposed to the 120 million euros from the state, which will come from the shareholders of Aegean.

In the first phase of the pandemic, the company took advantage of the horizontal measures adopted by the government for all sectors of the economy and the support of the world of employment.

Petsas also referred to Prime Minister Kyriakos Mitsotakis' programme and specifically his participation in a teleconference to be held at 17:30 for the presentation of the Development Plan for the Greek Economy, by the Pissaridis Committee.

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