The EU Commission decides that the sale of a state owned airlines company does not amount to state aid (LOT Polish Airlines)

Article published on Lexxion State Aid Blog

Sale of State-owned Airlines* Introduction In the previous posting I examined the funding of a regional airport. In this posting I look at a case concerning an airline; more specifically, the sale of three subsidiaries of Polish airline LOT. During the past five or so years, the Commission has had to deal with many measures involving different kinds of public support to airlines [e.g. Alitalia, Olympic, Cyprus Airways, Malev]. The typical problem when it comes to troubled airlines is that governments are too eager to prop up what they consider to be their “flag carriers”. They provide loans and grants to rescue and/or restructure airlines which experience very low liquidity or are lumbered with large non-performing assets. Normally, sale of assets is a solution for raising much

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Phedon Nicolaides, The EU Commission decides that the sale of a state owned airlines company does not amount to state aid (LOT Polish Airlines), 20 November 2012, e-Competitions November 2012, Art. N° 59061

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