European Commission Backs LOT’s Loan

The European Commission has approved a €100m government loan to LOT Polish Airlines. After evaluation, the commission found that the loan is in line with EU state aid rules. The short-term loan will enable LOT to repay creditors and continue operations until its restructuring plan, which will be submitted on June 20. The commission will then reassess the airline’s financing. LOT, which is Poland’s flag carrying airline, has reported losses since 2008. In November 2012, LOT sold its three subsidiaries to state-owned companies - a deal which the commission ruled did not involve state aid.

TAGS: Airlines
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