Controlled Bankruptcy of Flagship Airline an Option, Says Poland

Warsaw (dpa) - A controlled bankruptcy at flagship airline LOT, which has been hit badly by the coronavirus lockdown and travel restrictions, is an option, a Polish deputy prime minister said on Tuesday, but only as a last resort.

"I do not envisage such a scenario at the moment. ... It is possible, but I treat it as an absolutely last resort," Deputy Prime Minister and Minister of State Assets Jacek Sasin told RMF FM radio broadcaster.

The state, which owns LOT, wants first and foremost to improve the condition of the airline through cutting wages and renegotiating contracts with leasing firms.

Poland will also consider public aid, similar to rescue packages received by airlines in other countries, Sasin said.

LOT suspended all flights in mid-March due to the coronavirus pandemic and the resulting restrictions on air travel. The company resumed domestic flights this month, but has yet to return to flying internationally.

Poland's coronavirus-related ban on international passenger air travel expires on Tuesday.

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