Backdoor bailout for national airline?
PR dla Zagranicy
John Beauchamp
12.07.2011 11:40
Although EU regulations stipulate that governments are not allowed to provide financial aid to companies if such a transaction interferes with the free market, the Polish government has reportedly found a way to funnel 200 million zloty (49.5 million euro) into LOT, the national carrier.
The Polish Treasury has a 93 percent stake in the carrier, and it managed to transfer funds via a third party.
A luggage company belonging to LOT set up a new company, to which the Treasury paid the 200 million sum.
The transaction was revealed by the Gazeta Wyborcza daily, and commentators have noted the financial struggles of LOT over the last two years, coupled with the need to purchase new Embraer aircraft from Brazil. (nh/jb)