European Commission approves restructuring aid for LOT Polish Airlines

European Commission concluded (29-Jul-2014) LOT Polish Airlines' receipt of PLN804 million (EUR193.7 million) in restructuring aid from Poland's government complies with European Union (EU) state aid rules. The Commission found the carrier's restructuring plan, due for completion in Oct-2015, to be "based on realistic assumptions and should enable the company to return to long-term viability within a reasonable timeframe." The Commission also reviewed claims LOT received state aid in the form of deferred airport charges at Polish state-owned airports, as well as the sale of real estate, subsidiaries, and the provision of loans from public and private companies, finding "none of these measures involved state aid within the meaning of EU rules, as they either involved no state resources or were carried out on market terms and thus did not confer any undue economic advantage to LOT." European Commission VP responsible for competition policy Joaquín Almunia said: "LOT has prepared a credible restructuring plan that should make it a viable company in the near future. At the same time, it gives up some profitable routes and slots at several congested airports, which creates opportunities for its competitors and reduces the competition distortions brought about by the aid." [more - original PR]