EU competition authority approves $270 million restructuring aid for Polish airline LOT
The European Union's antitrust authority has approved the Polish government's 200 million-euro ($270 million) bailout for its ailing national carrier, LOT airlines.
The 28-nation bloc's executive Commission said Tuesday the assistance does not violate EU rules limiting state aid to businesses since it will "allow the company to become viable in the long-term without unduly distorting competition."
Star Alliance member LOT has been in financial difficulty for several years. In May 2013, the EU approved a 100 million-euro government rescue loan on condition the Polish government presents a sound restructuring plan. Poland then proposed the 200 million-euro capital injection to help LOT regain its long-term viability by 2015.
EU antitrust chief Joaquin Almunia said the "restructuring plan should make it a viable company in the near future."