Olympic Airlines/Air
"Greece said yesterday it would try to inject 100 million to 150 million euros ($87m-131m) of private funds into Olympic Airways and shed about 2,000 jobs in a last-ditch effort to keep the airline aloft.. .The restructuring plan, put in place after a high-profile privatisation effort flopped last week, hopes to prevent Olympic becoming the third large European airline to collapse in six months.
A ministry outline of the plan made clear this was Olympic's last chance to survive in a difficult international market, particularly with the European Union increasingly strict about funding rules.
"It is clear this last effort must succeed for Olympic to keep flying. There is no margin for failure in this attempt," a ministry statement said.
The plan includes splitting up the debt-ridden airline and pumping money into a new company handling flight activities, which will remain 49 per cent owned by the state.
Under the plan, new management would improve the flight network, run full planes and cut jobs to make the airline leaner, more profitable and more attractive for a future buyer.
The rest of its activities will be sold off separately. Some will be put on the block immediately, but others will be given two years to improve before being offered to the market.
"We believe that there must be a viable, major national air carrier which will serve the needs of Greece, Europe and the region," Finance Minister Nikos Christodoulakis said after a cabinet meeting that unanimously approved the scheme.
The European Union, which has seen other Brussels-sanctioned restructuring plans for Olympic fail in the past, must approve the re-shape, which will leave Olympic's ballooning debts behind it."