The European Commission said on March 10 2009 that it had decided that Greece’s revised privatisation plan for Olympic Airlines and Olympic Airways Services did not raise State aid concerns.

Olympic Airlines is being sold in a deal with Marfin Investment Group announced on March 7 2009. The Greek state, which bought the company from legendary Greek tycoon Aristotle Onassis, is selling the airline for 177.2 million euro, development minister Costas Hatzidakis said.

The European Commission said in a statement that the original privatisation plan, which had been approved by the EC on September 17 2008, was based on an open, transparent and non-discriminatory public tender procedure.

However, given the financial and economic crisis, the tender process was not successful.

"The Greek authorities have now pursued the sale by direct negotiation with interested parties, in compliance with EC law."

In its September 2008 decision, the EC had found that the plan of the Greek authorities to sell certain assets of Olympic Airlines and Olympic Airways Services prior to the liquidation of the two companies did not involve State aid, provided that certain undertakings given by the Greek authorities were fully complied with.

The Commission had also considered that the planned privatisation would maximise the chances of recovery of illegal and incompatible State aid that had previously been granted to Olympic Airlines and Olympic Airways Services.

In accordance with the September 2008 EC decision, the Greek authorities launched a public tender procedure.

All of the bids were below the minimum values established by an independent valuation, mainly due to the financial and economic crisis.

Given this situation, the Greek authorities informed the EC that the only way now open to implement the September 2008 EC decision was to proceed with a direct sale of the assets.

In its March 10 2009 decision, the EC considered that the revised privatisation plan does not give rise to State aid concerns.

Firstly, under state aid rules the EC and member states must work together in good faith to overcome unforeseen or unforeseeable difficulties encountered in executing recovery decisions.

Secondly, the Greek authorities have so far complied with the EC September 2009 decision, the EC media statement said.

Thirdly, the direct sale facilitates a faster conclusion of the sale of the privatisation of Olympic Airlines’ and Olympic Airways Services’ assets than re-tendering the assets, while ensuring market price for the transactions.

Finally, the direct sale is expected to ensure the continued provision of routes subject to public service obligations, thereby protecting residents of outlying islands from possible disruptions to air services.

The Athens News Agency said that The Greek government welcomed the EC decision, Hatzidakis said.

Hatzidakis told journalists that an effort to privatise Olympic Airlines has become the most difficult post-war, task and emphasised that the March 10 decision showed that this effort was based on very strong foundations.

Express.gr said that according to reports, Greek prime minister Costas Karamanlis expressed satisfaction at developments regarding Olympic Airways during a meeting on March 9 with Hatzidakis.

On March 9, Greek newspaper Avriana said MIG vice-president Andreas Vgenopoulos was "turning OA into an air transport giant - he plans new major investments in banking sector, telecommunications, energy and hotels".