EU opens probe into Polish state aid for LOT airline

(BRUSSELS) - The European Commission opened Wednesday an investigation to see if government help worth some 200 million euros to fund a restructuring plan at LOT Polish Airlines complies with state-aid rules.

The probe will determine whether LOT can survive on its own afterwards without more taxpayer help and if the aid given distorts competition, it said in a statement.

Opening an enquiry allows interested parties to comment and does not prejudge the outcome, it said.

However, it said it "has doubts whether LOT's restructuring plan complies" state-aid rules and "is concerned that the forecasts on long-term viability may not be realistic and that the proposed capacity reduction may not be adequate to compensate for the distortions of competition.

"The Commission also has doubts whether LOT's own contribution to the restructuring cost is sufficient," it said.

Additionally, it will take in account previous help given to LOT in view of the EU rule that a company can only get state aid one in a 10-year period, it added.

Polish flag carrier LOT has been in trouble for many years and in late 2012 had to ask for government help to avoid collapse.