MIAMI – During a press conference today, Greek government spokesman Stelios Petsas announced that the state would soon award €120m in funding to Aegean Airlines (A3) to help get the airline through this difficult, pandemic-ravaged year.
According to greece.greekreporter.com, private interest in the scheme to help fund the famous Greek airline will also take place. the company’s own shareholders will donate an additional €60m from private grants to A3.
Petsas said the government would support the carrier through a comprehensive plan based on an equitable burden-sharing scheme between state and private shareholders. The aid comes as A3 has been hit by the effects of the pandemic, mainly those that have taken a toll on social and economic activity, hurting travel and tourism the most.
Aid Plan Availed by the European Framework
According to Petsas, “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.
During the press conference, he assured that the decision complied with the European framework of state aid to companies and sectors affected by the pandemic, such as the aviation sector. “this is essentially a plan to strengthen the largest domestic airline,” echoing the efforts of other governments to prop up their respective air travel industries.
Petsas further stated that the move ensured “the significant participation of private funds. 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.”
Featured image: John Leivaditis/Airways