Poland’s LOT seeks another $120 mln in state aid

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Poland’s troubled flag carrier LOT has asked for up to PLN 381 million ($120 million) in further state aid as part of a new rescue plan, the ministry overseeing state assets said on Thursday. LOT, one of the world’s oldest airlines, has burned through state funds over the years in failed turnaround plans as it tries to compete with larger rivals and low-cost carriers. The Treasury Ministry, which controls most state companies and their privatizations, said it would back LOT’s latest restructuring plan under some conditions but had not yet approved further aid, after a PLN 400 million loan in December. “This is the last attempt to rescue LOT by the Treasury Ministry,” said Treasury Minister Wlodzimierz Karpinski in a statement. “Under EU regulations, the company will not be able to receive support from state funds for another 10 years.” The carrier reported a loss of PLN 400 million in 2012 - its highest since 2008.

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