newstodate.aero
Aug 05, 2014 (newstodate): The EU Commission has lifted the pressure on the Polish carrier LOT by accepting the state support granted by the state.
In a decision published on July 29, 2014, the Commission states that the 193.7 mio euro provided by the state on various occasions did not distort competition and the restructuring program submitted by the carrier on June 20, 2013, fully meets the conditions enabling LOT to return to profitable and sustainable operations as was also the case in 2013 for the time in five years.
Under the restructuring program, LOT has reduced the number of routes, reduced over-all capacity, and cut down on staff and costs.
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.
In a decision published on July 29, 2014, the Commission states that the 193.7 mio euro provided by the state on various occasions did not distort competition and the restructuring program submitted by the carrier on June 20, 2013, fully meets the conditions enabling LOT to return to profitable and sustainable operations as was also the case in 2013 for the time in five years.
Under the restructuring program, LOT has reduced the number of routes, reduced over-all capacity, and cut down on staff and costs.
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.