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EU clears state aid for ailing Polish carrier LOT

Tuesday - 7/29/2014, 6:50am  ET

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."


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