Greek state carrier Olympic Airlines has clinched a deal with Dutch charter airline Transavia to provide ground-handling services at Greek airports, Olympic said on Thursday.

"The contract covers all Greek airports and its duration is until the end of 2008. Based on this, Olympic Airlines Services (OA-Y) will have revenues of about EUR3.5 million (USD$4.3 million) annually," Olympic said.

OA-Y, which provides ground handling at Greece's 38 civil aviation airports, said it expects to service about 3,000 Transavia flights annually.

Greece is trying to sell Olympic Airlines as part of a privatization drive to raise proceeds to pay down public debt, the second-highest in the euro zone. The government has said it is currently talking with three bidders.

Transavia Airlines, part of the Air France KLM Group, operates scheduled and charter flights to more than 70 destinations.