The Greek government has received a fresh approach from a local businessman interested in buying a majority stake in ailing national carrier Olympic Airways.

Transport Minister Christos Verelis said businessman Pavlos Vardinoyannis had delivered a letter to the government's adviser on the sale, confirming his ability to finance a deal.

"It [the letter] will be examined and they will be called in for clarifications," Mr Verelis said.

Greece hopes to sell 51% of the debt-laden and loss-making airline.

Although privatisation plans have, so far, failed and the EU does not permit "state aid" for a government-led rescue, the Greek government has said it will not allow Olympic to collapse.

Deadline missed

Swissair and Belgium's Sabena in the past year became high-profile casualties of the aviation industry downturn.

Both airlines have since been restructured and relaunched.

Attempts to sell Olympic fell apart in February when the final bidder - Integrated Airline Solutions, a group led by Mr Vardinoyannis - missed a deadline to give financial assurances.

The Greek government then dismissed its privatisation adviser, investment bank Credit Suisse First Boston, later replacing it with local bank ETEBA.

Illegal

Plans for restructuring Olympic include cutting thousands of jobs, reducing routes and selling off non-core businesses such as a catering operation.

The EU is investigating whether a loan the airline received earlier this year from a state-controlled bank constitutes illegal state aid.

In its last annual results, Olympic reported a loss of $85.1m euros ($84m; �54m).

The office of Mr Vardinoyannis - a shipping, oil and construction tycoon - could not be reached for comment on the renewed approach for the airline.