The European Commission approved a € 120 mln Greek state aid measure to Aegean Airlines. According to the European Commission, the measure aims at compensating Aegean for losses caused by the Covid-19 outbreak and travel restrictions imposed by Greece and other destination countries.
Brussels, Belgium: 23 December 2020
Since the start of the coronavirus, Aegean Airlines has suffered a significant reduction of its services, resulting in high operating losses. The state aid measure aims to compensate Aegean Airlines for the damage caused by the coronavirus travel restrictions for the period from 23 March - 30 June 2020.
According to Greek Travel Pages:
It is conditioned upon Aegean Airlines successfully effecting a private investor share capital increase of € 60 mln. Additionally, the Greek state is expected to receive free warrants, with a strike price equal to the price that investors shall be offered new shares upon the capital increase. Warrants should be exercisable any time during the period between 2 to 5 years after the disbursement of the support by the Greek state. Warrants received by the Greek state would have rights for the acquisition of shares representing 11.5% of the company’s common shares post share capital increase.
All necessary procedures related to the € 120 mln Greek state aid grant to Aegean Airlines are expected to be completed within the first quarter of 2021.
Aegean Airlines is a Greek-based airline which transported about 15 million passengers in 2019. Before the coronavirus outbreak, Aegean Airlines operated flights from Athens and from other Greek airports to 155 domestic and international destinations in 44 countries.
Navigator Consulting Group provides Investment Advisory and Strategic Management services for companies in Cyprus, Greece and internationally.
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Sources:
European Commission. 23 December 2020
Greek Travel Pages. 23 December 2020
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