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Last Try to Save Polish Airline LOT

Published: June 21, 2013; 17:10 · (Vindobona)

Poland’s National Treasury starts a final attempt at saving Polish Airlines LOT.

Last Try to Save Polish Airline LOT / Picture: © LOT Polish Airlines

The Polish Treasury does not exlude further state funding for ailing carrier LOT, Treasury Minister Wlodzimierz Karpinski announced on Thursday after the most recent restructuring plans were approved. In an announcement Karpinski declared it to be the last try by the Treasury Ministry to save LOT. "Under EU regulations, the company will not be able to receive support from state funds for another ten years," he added.

The airline carrier requests a further amount of up to PLN 381m in funding as part of the bail-out plan. The Treasury Minister explained that by approving the restructuring plan, it does not mean the further addition of public aid funds for the troubled airline. In increase of means for LOT can be made through a special agreement. Karpinski continued to explain that further financial backing would only be justified if the airline company’s key partners and staff participated in the rescue plan for LOT and if the carrier will try to keep the amount of required financial funding at a minimum level.

The anti-trust body UOKiK returned LOT’s revised restructuring plan to the EU Commision. For the country it is decisive to be given permission for further public assistence. In December 2012, preliminary approval was already given. The EU Commission now has two months to assess the plan and decide whether it is in line with EU regulations. In case the Commission does not approve of the plan LOT will have to return a total of PLN 400m, which the carrier received in December.

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