How a golden era of Greek aviation ended in liquidation

Countries & Cities · Published 13 October 2026 Swipe more like this →

In short: Once a symbol of luxury featuring Pierre Cardin uniforms and golden cutlery, Olympic Airlines transitioned from a state-owned powerhouse to a defunct carrier. Its collapse was a complex saga of massive debts, failed privatizations, and a high-stakes battle with the European Commission.

The airline's origins trace back to 1930 with Icarus, but the modern era began in 1957 when shipping magnate Aristotle Onassis purchased the company, renaming it Olympic Airways. Under Onassis, the airline became synonymous with prestige, offering first-class passengers fine dining and even a pianist. The fleet expanded from Douglas DC-3s to cutting-edge jets like the de Havilland Comet 4B and Boeing 747-200s, establishing routes from London to New York and even Melbourne.

However, the transition from private prestige to state management brought significant instability. Following the death of Onassis's son, Alexander, in 1973, and the subsequent death of Onassis in 1975, the Greek state took control. The airline faced mounting financial difficulties throughout the 1980s and 1990s, exacerbated by management issues, such as politicians traveling for free and the press receiving 97 percent discounts. By the early 2000s, the airline's debts had ballooned, with the Greek government's restructuring efforts failing to stem the losses.

The end arrived through a series of legal and financial pressures. The European Commission declared nearly 700 million euros in state aid illegal, and by 2009, the Greek state reached an agreement to sell flight operations to the Marfin Investment Group. While the airline attempted to maintain some public service routes to the Greek islands, it eventually ceased all operations on 31 December 2009. Its successor, Olympic Air, took over the privatized operations, marking the final chapter of the original carrier's history.

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