The government of Greece will provide capital support worth $146 million to Aegean Airlines as part of its recapitalisation plans for the airlines.
The government had earlier informed the European Commission about the plan to compensate the airlines for damage suffered from travel restrictions due to the outbreak of the Covid-19 pandemic. The $146 million will be a direct grant.
European competition commissioner Margrethe Vestager, told the media, “The aviation industry is one of the sectors that has been hit particularly hard by the coronavirus outbreak. This measure will enable Greece to compensate Aegean Airlines for the damage directly suffered due to the travel restrictions necessary to limit the spread of the coronavirus. We continue working with the Member States to find workable solutions to support companies in these difficult times, in line with EU rules.”
The airline which transported about 15 million passengers last year operated flights from Athens to other domestic and international destinations before the outbreak of the pandemic. The airline had travelled across 44 international destinations. Aegean Airlines has suffered a significant reduction in its services, resulting in high operating losses.
The pandemic ravaged year has walloped the aviation industry and has left many unemployed in the sector. Other airlines such as British Airways, Japan Airways, and many others.
It is reported that the overall loss due to the outbreak of the pandemic for air carriers could worth approximately $113 billion. The future is uncertain for the global aviation segment until the world is protected against the pandemic through vaccination. The reports are produced by the International Air Transport Association.