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GV Olympic Airways headquarters in central Athens
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GV's Airport buildings (3 shots)
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LV & GV's Olypmic aircrafton tarmac (6 shots)
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Initials BB/1620 TH/AH/BB/1613



Script is copyright Reuters Limited. All rights reserved

Background: The troubles of Olypmic Airways, the Greek national airline controlled by shipping magnate Aristotle Onassis, reached anew crisis at the weekend as all flights were halted in a dispute with the new Greek government.

A week ago, Mr. Onassis cancelled his contract withthestate which gave him exclusive rights to operate thenational airline until theyear 2006.

The dispute derives from the energy crisis and decline in tourism, which contributed to a company loss of about GBP 15 million sterling during the current year. The airline management tried to trim costs by suspending staff. But the government stepped in with a decree prohibiting companies of the size of Olympic from dismissing staff without ministerial consultation.

Under the terms of Mr. Onassis' exclusive operating contract he should continue to run the company for six months after giving notice of cancellation. But a spokesman for the airline said on Friday (13 December) that the company is unable to operate any domestic or foreign flights.

During the past two days, there have been reports that the Greek Government is preparing to take over the airline.