The state will participate in saving LOT Polish Airlines: PM

“The state will participate in the rescue of LOT Polish Airlines, which are in a difficult financial situation due to the pandemic,” Prime Minister Mateusz Morawiecki announced on Tuesday at a press conference.

"The Polish state, through the Polish Development Fund (PFR) and the assembly of financial and credit lines to support LOT will participate in the rescue of those airlines that are our pride," said the Prime Minister. He added that the aviation sector was hit hard by the crisis and was one of the most affected. "Our LOT, our airlines, (...) are facing enormous troubles today, just like all other airlines in the world," he emphasized.

The Prime Minister also said that currently all areas related to aviation are subject to a special analysis, and the Ministry of State Assets is in direct contact with the management of LOT Polish Airlines (PLL).

The European Commission on December 22 2020 approved two Polish aid measures for a total amount of approximately EUR 650 million (approximately PLN 2.9 billion), the purpose of which was to support PLL LOT during the pandemic. The aid measures included a subsidised loan of EUR 400 million (approximately PLN 1.8 billion) and a capital injection of approximately EUR 250 million (approximately PLN 1.1 billion). LOT has committed to repay most of the aid with interest within 6 years. The measures were approved under the Temporary State Aid Framework.

The owner of 100 % of shares of PLL LOT is the Polish Aviation Group (PGL). The sole shareholder of PGL is the State Treasury and the rights attached to shares in this company are exercised by the Minister of State Assets.

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