The European Commission is scheduled to release on Wednesday the results of a probe into OA's alleged state funding by the previous Socialist government in 2003 in a bid to make the debt-ridden company more attractive to potential investors.

    Under EU competition laws, companies are banned from receiving government subsidies, and offenders are obliged to repay them.

    If ordered to repay the aid, Olympic Airlines could be pushed to financial collapse.

    "The legal process will take some time, but OA will continue tofly during that period," the spokesman said.

    "What I can say with certainty is that the process will either involve the company's sale, or its liquidation in operation," he added.

    He noted that the European Commission's imminent decision wouldmake the airliner's position "exceptionally difficult," stressing that the government was not prepared to put further burdens on Greek taxpayers "when there is no hope for OA."

    The spokesman said two failed restructuring bids cost the statesome 2 billion euros (2.5 billion US dollars), while accumulative debts amount to another 1 billion euros (1.24 billion dollars).

    "The company currently costs the Greek taxpayer 1.5 million euros (1.86 million dollars) a day," he said.

    Roussopoulos repeated a pledge made Sunday by Prime Minister Costas Karamanlis that no Olympic Airlines employee would be left jobless.

    He also asserted that significant progress had been made in theprivatization process so far. He added that the prospective buyersof Olympic Airlines sent a memorandum of their joint position to the European Commission.

    The spokesman promised that the government would ensure the flight services to outlying and less busy Greek islands would continue regardless of the outcome of European Commission investigation. Enditem