Brussels, 06/11/2013 (Agence Europe) - On 6 November, the European Commission opened an in-depth investigation to assess whether PLN 804 million (around €200 million) restructuring aid for the ailing state-owned air carrier LOT complies with EU state aid rules. The Commission will examine in particular whether the planned aid will enable LOT to become viable without continued public funding and whether the company offers adequate compensation to alleviate the distortion of competition caused by the state support. The Commission will also verify whether LOT sufficiently contributes to the cost of restructuring. The aid, notified on 20 June 2013 along with a restructuring plan, should help the cash-strapped company finance its restructuring and restore viability by 2015. The Commission is concerned that the forecasts for 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 as to whether LOT's own contribution to the restructuring cost is sufficient. Finally, the Commission will investigate whether LOT is eligible for restructuring aid in view of potential aid the company may have previously received from the state-owned airports in Poland when it was already in difficulty. Under EU state aid rules, companies in difficulty can receive rescue and restructuring aid only once over a period of ten years. The company has reported losses in every financial year since 2008 and was on the brink of bankruptcy when it received a bailout loan from the Polish state in May. (FG/transl.fl)