Greece's private Athens-based Aegean Airlines and Chrysler Aviation on March 4 2009 submitted formal bids of 170 million euro and 210 million euro, respectively, to buy troubled state-run Olympic Airlines.

Aegean Airlines SA, the successor to Aegean Aviation first set up in 1987, is the second largest Greek airline based in Athens. It operates scheduled services from Athens and Thessaloniki to other major Greek destinations as well as to a number of European destinations. Its main base is Eleftherios Venizelos International Airport, Athens, with a hub at Thessaloniki International Airport

Aegean Airlines said that its aim was to create a robust Greece-based carrier with the "necessary critical size, strength and capability" to face competition in the single European market.

A company statement read: "In case our bid is accepted by the Greek state, we intend to ease part of our domestic activities to further boost existing competition in the Greek air traffic market, while servicing remote lines remains an obligation".

Aegean also pledged to complete the transaction in no more than 60 days after signing a final agreement with the Greek state, saying this will save hundreds of million of euro in operating losses burdening the Greek state, Greece's ANA agency said. Media reports described the bid by Aegean as a surprise.

Media reports said that Chrysler Aviation's offer for Olympic covers the Olympic Airways group (Pantheon Airways, ground handling and the technical & maintenance base) while it also plans to submit an offer for the purchase of Olympic Group's remaining assets.

Greece's Marfin Investment Group, or MIG, and Swissport have already tabled separate bids.

Development minister Costis Hatzidakis viewed as positive that there had been further bids for Olympic Airlines.

"The government will continue talks with MIG and Swissport until the end of the week, respecting the exclusive nature of negotiations, while we will also examine other offers based on specific principles: existing legislation, national and community rules on competition, real date of the offers and the recommendations of a commissioner monitoring the sale procedure," Hatzidakis said.