Although yes state aid gives an unfair advantage lets not forget that the State Treasury of Poland has a 68% share in LOT. They are hardly going to let the airline fail thus rendering their equity worthless are they?
They are investing in 787's (which will hold their value for some time I imagine) basing their short haul ops on Embraer jets and bringing in Q400's for their low cost operator which BE prove is the right move. Of course I havn't seen the figures but at least it appears they have some sort of plan?
Plus lets not forget Ryanair are hardly a squeaky clean operation, they even hold airports to ransom for discounts!