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Poland: State airline probed by EU regs over aid

 |  November 6, 2013

The European Commission announced Wednesday it has launched an in-depth probe into the state aid given to Poland’s state airline for a company restructuring.

LOT Polish Airlines is set to receive nearly $300 million worth of aid for its restructuring plan in efforts to remain afloat amid a financially instable time for the company. The first installment of those funds were sent last December, with the rest scheduled to reach the company this month.

In a statement, the Commission said it will focus on whether the aid “will enable LOT to become viable without public funding” and whether the aid hamper competition.

Under EU law, state aid falls under competition rules.

According to reports, LOT has been on the brink of bankruptcy for several years, in part due to fierce competition from various European airliners.

Full content: Wall Street Journal

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