Brussels, 20/09/2012 (Agence Europe) - On 19 September, the European Commission authorised restructuring aid for state-owned Czech Airlines in the form of a 2.5 billion Czech crown (€100 million) debt-to-equity swap loan from the state-owned company Osinek. The Commission says the aid complies with EU state aid rules. Its investigation, launched in February 2011, showed that the revised five-year restructuring plan is based on reasonable assumptions and should enable the airline to return to viability within a reasonable timeframe. The proposed capacity reduction, the sale of planes and the surrender of landing slots at European airports will avoid any undue distortion of competition. Moreover, Czech Airlines will adequately contribute to the costs of restructuring by selling subsidiaries, aircraft and other assets as well as securing a private bank loan for an aircraft lease. (FG/transl.fl)