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Lot Polish Airlines has run into financial troubles resulting in its cut down. The airline has decided to reduce its fleet size from 40 to 25 aircrafts and to downsize its staff by nearly 30 percent.
In December 2011, Poland's government had granted LOT an emergency loan of 127 million so that it could keep up with its operations. This loan however may be termed as illegal state aid distorting competition as per EU rules. And if this so happens then the airlines will be forced to return back this aid to the government and eventually file for bankruptcy.
LOT Polish Airlines has made loses every single year since 2010. In the year 2012 alone passenger traffic on LOT Polish Airlines flights fell by nearly 20 percent. In order to curb its expenses the airline has already decided to fly its most profitable routes operated by its most economical planes.
This will directly imply that the airlines will have to discontinue using its older and less fuel efficient planes and axe its secondary routes.
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