EC agrees LOT airline 100 mln euro bailout
PR dla Zagranicy
Poland’s debt-ridden national carrier LOT has had a state bailout package worth 400 million zloty (100 euro) approved by the European Commission.
Photo: PAP/Jacek Turczyk
photo - PAP Jacek Turczyk (archive)
The 100 euro bailout was given to the airline late last year as part of a wide-ranging restructurization plan agreed by the Polish government.
The EC had to approve the bailout in accordance with the European Union's competition rules.
“The Commission found, in particular, that the aid was limited in time and scope. The Commission has approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Poland by 20 June 2013 (i.e. within six months from implementation of the measure),” says the European Commission statement issued on Wednesday morning.
“The Commission found the measure to be in line with its guidelines on the rescue and restructuring of companies in difficulties,” the statement continues.
“In particular, the aid amount is limited to what is needed to keep the company in business over the next six months,” the EC says.
In April the government gave the green light to a change in legislation which would allow the full privatization of LOT airlines. Previous legislation stipulated that the state must have a majority stake in the national carrier.
In January, LOT sacked its CEO, Marcin Piróg, and re-installed former LOT boss Sebastian Mikosz to carry out a radical restucturization, including lay offs of up to 700 workers.
LOT recorded net losses of 157.1 million zloty (38 million euros) in 2012. (pg)