European Commission on Wednesday ordered Greece's national carrier Olympic Airways and its successor Olympic Airlines to repay the illegal aid as much as 540 million euros (662.5 million US dollars) from the Greek government during past few years.

The move could put the debt-laden airliner into financial collapse and threaten Greece's plan to sell its flag carrier to an investment group.

"By granting this aid, Greece has given Olympic Airways and Olympic Airlines an advantage not available to their competitors,"the Commission said in a statement.

"Greece has two months in which to inform the Commission of the measures it intends to take to comply with the decision," it added.

However, the commission said the final amount Olympic must pay back -- ranging between 190 million euros and 540 million euros --would be determined at a later date.

Greece created Olympic Airlines in 2003 as a successor to debt-laden Olympic Airways in a bid to save the flag carrier from financial woes.

Greek government will hold an emergent meeting over the EU decision on Thursday in an inter-ministerial commission including economy and finance minister, development minister, transport minister and labor minister, Government Spokesman Theodore Rousopoulos told reporters.

He reiterated that the Greek state is loosing 1.5 million euros (1.86 million dollars) daily from the operation of Olympic Airways,noting that the privatization program of the national carrier met difficulties.

"I don't think anyone has expressed interest to buy Olympic Airlines as it is, with its thousands workers and its financial burdens," he said. Transport Minister Mihalis Liapis promised that the government was seeking a solution for Olympic Airlines that would ensure the security of the workforce and had the approval of the European Commission.

He admitted that the Commission decision was a heavy blow to the airline's already precarious financial state and made the process of its privatization even more difficult.

Meanwhile, he stressed that the government would exhaust all margins for OA's sale and was already working on alternative solutions for the day after.

He reiterated the government's pledge to keep Olympic Airlines operating until the "best possible" solution is achieved and to protect the rights of the workforce.

After the EU decision was announced, around 2,500 Olympic Airlines' employees staged a protest rally at the departure terminal of the Athens International Airport, warning that they will step-up mobilizations against "scenarios" over the future of the ailing national carrier.

Source: Xinhua