EC approves LOT restructure

The European Commission has ruled that LOT Airlines’ restructure plan is in line with state aid legislation. Under the reorganisation, Poland will give its national airline €200m.

The European Commission has ruled that LOT Airlines’ restructure plan is in line with state aid legislation. Under the reorganisation, Poland will give its national airline €200m.

The commission decided that the plan would allow LOT to become a viable carrier without distorting competition in the EU single market.

The commission’s VP of 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.”

In May 2013, the commission approved a €100m rescue loan from the Polish government. LOT aims to be financially viable by 2015. Its 2013 financial results reported the company’s first net profit since 2007.

TAGS: Europe
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