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Greece’s state injection of 120-million-euros to Aegean Airlines

The Greek government will support Aegean Airlines with 120 million euros to help the private company come through the effects of the pandemic, the government spokesman announced on Monday.

Greek government spokesman Stelios Petsas announced on Monday during his usual press briefing that the government would soon be awarding 120 million euros in support to Aegean Airlines to help get them through this tough, pandemic-ravaged year, spokesman Stelios Petsas said during the daily briefing.

“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,” Petsas said.

“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.”

Petsas added that 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 from the Aegean shareholders is foreseen to be equal to half that of the state aid, that is 60 million euros.

In the first wave of the pandemic in spring, Aegean Airlines took advantage of the horizontal measures adopted by the government for all sectors of the economy as well as of the support for employees.

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