The European Commission will decide next week whether it will launch a formal state-aid investigation of Greece's plans to set up a slimmed-down version of national airline Olympic Airways, a Commission spokesman said on Thursday.

Gilles Gantelet said the EU executive still had some questions about Greek plans to set up a new national carrier, Olympic Airlines.

A formal investigation would enable all interested parties to comment on the government's plans, he added.

The day after the Greek parliament last September approved the plans for the new carrier, the Commission asked for details of the plan to examine whether it complied with European rules that stop governments from bailing out their airlines.

The Commission was concerned the plan entailed selling off the profitable parts of Olympic while keeping loss-making and debt-ridden parts in state hands, a move which might be considered as providing state aid.

Under the plans, the new airline would have a workforce of 1,850 compared with the current 6,100.

The EU executive meets for its routine weekly meeting next Wednesday and Gantelet said the Olympic Airlines issue was on the agenda. He said the Commission's department directors had not yet discussed it.

(Reuters)