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LOT posts a massive loss as sector falls into recession

Polish national airline LOT might soon strengthen its links with Lufthansa after closing the year with a loss on basic activities of 160-200 million zlotys.

“The sector is falling into recession. Small carriers feel it the most. The role of alliances is slowly marginalized by acquisitions. Lufthansa is the most active one not excluding participation in the privatization of SAS. We do not have much choice,” said Dariusz Nowak, president of LOT.

He would not confirm the interest in LOT from Middle and Far East companies. “With such a structure [a receiver of Swissair for over eight years] it is difficult to develop any kind of strategy and therefore this problem should be solved as soon as possible,” said Dariusz Nowak. He went on to say that the first step could envisage selling a stake to a sector investor with the state retaining 51% share in the firm, while further privatization plans could be considered, including a floatation on the bourse. (Warsaw Business Journal)