EU clears state aid for ailing Polish carrier LOT

BRUSSELS (AP) — The European Union’s antitrust authority has approved the Polish government’s 200 million-euro ($270 million) bailout for its ailing national carrier, LOT airlines.

The 28-nation bloc’s executive Commission said Tuesday the assistance does not violate EU rules limiting state aid to businesses since it will “allow the company to become viable in the long-term without unduly distorting competition.”

Star Alliance member LOT has been in financial difficulty for several years. In May 2013, the EU approved a 100 million-euro government rescue loan on condition the Polish government presents a sound restructuring plan. Poland then proposed the 200 million-euro capital injection to help LOT regain its long-term viability by 2015.

EU antitrust chief Joaquin Almunia said the “restructuring plan should make it a viable company in the near future.”

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Federal News Network Logo
Log in to your WTOP account for notifications and alerts customized for you.

Sign up