Gov’t announces capital boost for Aegean Airlines

Greece is considering a capital injection of around 120 million euros for Aegean Airlines, the government said on Monday, adding that the nation's biggest carrier was crucial to the tourist-reliant economy.

The news drove the carrier's shares 7.35% lower on closing on Monday.

Under the plan, the government would receive warrants in exchange for providing funds for the privately owned Aegean Airlines, the government's chief spokesman Stelios Petsas said.

Aegean shareholders would in addition provide another €60 million.

In the longer term, the state would get its money back as air transport provided "the wings that bring tourists to the country," Petsas said.

"With the warrants the state will get, when recovery comes, the price of the shares will increase, meaning the state will get money back when this coronavirus adventure is...