LOT flag carrier with no choice

MAG
opublikowano: 18-12-2008, 16:55

Warsaw (Puls Biznesu) – The flag carrier may fall into Lufthansa’s hands with PLN 160-200m of loss this year.

Dariusz Nowak, LOT CEO, presents very gloomy market situation.
“The sector is in recession. Small carriers are the most affected ones. Alliances are more and more marginal and are being replaced by acquisitions. Lufthansa is the most active player with Brussels.airlines, bmi, Austrian. It is also interested in privatization of SAS. We don’t have big choice. Either we change the alliance which means big costs, or we talk with Lufthansa without biases. We have chosen the second option but decision concerning the company’s future will be made by its owners”, Dariusz Nowak said.
He did not want to confirm that any Middle East or Far East airline is interested in LOT.
“I’m a little bit surprised. The only thing we can offer to Lufthansa is our market. Will LOT only deliver passengers to German airports?”, Grzegorz Sobczak from “Skrzydlata Polska” aviation magazine asked.

Meanwhile, LOT’s management plan that in the first of restructuring, a capital increase could be conducted. The new investor would buy a stake while the state would hold 51 percent of the airline. Further privatization would be considered than, including listing on the WSE. Konrad Tyrajski, LOT deputy CEO for financial issues, said that thanks to cost cutting program and PLN 40m of saving, LOT will have only PLN 160-200m of loss this year.
“This is really good result, boosted by surprisingly good November. The worst is over, we now need to consequently implement our repair program”, the deputy CEO added.
Meanwhile, the CEO fears the first quarter of 2009 and payments connected with the acquisition of boeing 787 and embraer planes, which are being delayed. Unless LOT finds an investor, the airline may further cut its operations, sell assets, including its headquarters, freeze wages and cut employment.

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Podpis: MAG

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