A PYMNTS Company

EC OKs Aid For Polish National Airline

By  |  December 22, 2020

The European Commission, on Tuesday, December 22, greenlighted an €650 million (US$791.6 million) public aid tranche for Poland’s flag carrier LOT Polish Airlines as it struggles with the pandemic crisis.

According to LOT management, the airline may lose its financial liquidity by the end of the year.

“The state aid measures consist of a EUR 400 million (approximately PLN 1.8 billion) subsidised loan and a capital injection of around EUR 250 million.(approximately PLN 1.1 billion),” read a press release from the European Commission.

Margrethe Vestager, the European commissioner responsible for competition, said LOT played a key role in the Polish economy, adding that the EC’s decision “ensures that the State is sufficiently remunerated for the risk taxpayers assume, and that the support comes with strings attached, including a dividend ban as well as further measures to limit distortions of competition.”

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.