Olympic Air newest EU flag carrier put on market

As the European aviation sector becomes more and more shaky, the Greek government is now looking to offload the “burden” of flag carrier Olympic Airlines.

On Friday the government announced that it would be breaking up the debt-ridden carrier, and has begun the process of currying prospective bidders, with an intention to fully-privatise the carrier by the end of 2009.

Most of the current 8,100 staff has been shifted to other public sector jobs.

“We are moving to rid citizens of the burden of Olympic Airlines,” said Costas Karamanlis, the Greek Prime Minister. “[Olympic Airlines is] a burden that costs Greek taxpayers millions of Euros each day.”

With EUR2.7 billion in debt, the carrier costs local taxpayers EUR2 million a day to keep afloat.

Already the European Commission has given Greece the go-ahead to break up the carrier and sell it, as the carrier becomes placed in “a special liquidation status”.