Greek gov’t unveils €115mn in support for airline industry

The Greek government has announced a EUR115 million euro (USD127.65 million) aid package for the tourism-dependent country’s ailing aviation industry. A joint statement issued by the Ministries of Finance, Labour, and Transport said the assistance would come in various forms including tax breaks for flight and cabin crews as well as ground handling staff which will save airlines roughly EUR7.7 million (USD8.55 million) annually. Value Added Tax (VAT) will also be reduced from the current rate of 24% to 13% for the remainder of the summer season. This will generate EUR30 million (USD33.3 million) in savings for airlines. Also, a co-work program worth EUR50 million (USD55.5 million) in employee social welfare contributions will be implemented for the period June 15 to December 31, 2020. The state will also increase subsidies for flights to remote Greek islands that operated during the April/May period, over and above their existing PSO subsidisation, to the tune of EUR20 (USD22) per seat or EUR6 million (USD6.6 million) in total.