newstodate.aero
May 16, 2013 (newstodate): The Polish state may breathe a sigh of relief by the EU Commission's approval of the loan saving the life of LOT by the end of 2012.
The Commission has ruled that the 100 mio euro grant to LOT in December 2012 was indeed necessary to save the airline from insolvency while struggling to restructure and take in the new Boeing 787 aircraft at the same time.
The loan must, however, be included in the final restructuring plan that will be submitted by June 20, 2013, and be approved also by the EU Commission.
LOT thus fared better than Hungary's Malev that was denied of EU approval of the state intervention, causing the carrier to declare bankruptcy in 2012 as this would require it to repay the state aid.
Now, both Estonia's Estonian Air and Latvia's airBaltic are still being scrutinized by the EU Commission to verify if these countries' state aid to the carriers fall within or just outside the rules prohibiting states from blurring competition through favoring own national airlines through financial packages.
The Commission has ruled that the 100 mio euro grant to LOT in December 2012 was indeed necessary to save the airline from insolvency while struggling to restructure and take in the new Boeing 787 aircraft at the same time.
The loan must, however, be included in the final restructuring plan that will be submitted by June 20, 2013, and be approved also by the EU Commission.
LOT thus fared better than Hungary's Malev that was denied of EU approval of the state intervention, causing the carrier to declare bankruptcy in 2012 as this would require it to repay the state aid.
Now, both Estonia's Estonian Air and Latvia's airBaltic are still being scrutinized by the EU Commission to verify if these countries' state aid to the carriers fall within or just outside the rules prohibiting states from blurring competition through favoring own national airlines through financial packages.