newstodate.aero
Nov 07, 2013 (newstodate): The Polish carrier LOT was relieved in May 2013 when the EU Commission agreed to the legality of a state loan securing the airline's continued survival.
But the relief did not last last long.
As a precondition for the positive EU ruling, LOT was required to come up with a comprehensive restructuring plan for its return to profitability.
Now, the EU Commission has launched a fresh probe into the issue as doubts have risen over the validity of LOT's forecast and the efforts by LOT to relieve its plights.
At the same time, the EU will also probe into earlier Polish state subventions for LOT to check if these would render the latest state aid illegal under EU regulations.
EU regulations allow for only one state aid package in 10 years to help companies restructuring.
But the relief did not last last long.
As a precondition for the positive EU ruling, LOT was required to come up with a comprehensive restructuring plan for its return to profitability.
Now, the EU Commission has launched a fresh probe into the issue as doubts have risen over the validity of LOT's forecast and the efforts by LOT to relieve its plights.
At the same time, the EU will also probe into earlier Polish state subventions for LOT to check if these would render the latest state aid illegal under EU regulations.
EU regulations allow for only one state aid package in 10 years to help companies restructuring.