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Post by valpomike on May 7, 2009 4:12:03 GMT 1
I read today, that the Polish owned air line, LOT is being sold due to major losses, in the past few years.
I use them when I fly to Poland, and each time the planes are full, so why are they losing money?
I also read that Poland is one of the few in Europe that is staying above water, and looking better each day.
Mike
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Post by valpomike on May 7, 2009 18:25:17 GMT 1
Does no one have a answer?
I was just wondering.
Mike
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Post by Bonobo on May 7, 2009 21:26:55 GMT 1
Does no one have a answer? I was just wondering. Mike Hmm, as far as I know LOT is still a state company. Mike, you should know that state companies do worse than private, that is why they want to sell it to a private investor. en.wikipedia.org/wiki/LOT_Polish_AirlinesThe airline is owned by the Polish government (67.97%), SAirLines B.V. (a member of SAirGroup) (25.1%) and employees (6.93%).[3] It has 4,199 employees (March 2007).[2]
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Post by Bonobo on May 19, 2009 21:03:28 GMT 1
LOT appoints new president, unveils crisis battle plan
The Warsaw Business Journal
12th May 2009
The Polish national carrier's new head is Sebastian Mikosz
Despite the crisis, LOT has no plans to cut expenditure on marketing
Polish flag carrier PLL LOT on Monday appointed Sebastian Mikosz as its new company president.
He has served as acting president of the firm for the past two months.
The firm, which suffered net losses of over z³.700 million in 2008, also announced an anti-crisis program to acquire new clients and keep existing ones.
"Our sales are falling - in line with the whole sector - by about 25%. The first quarter was not the best period for us, but despite the deteriorating situation we want to fight to regain clients," said Pawe³ Pud³owski, LOT's deputy president.
Despite the crisis, the firm has no plans to cut expenditure on marketing. "We shall look for savings in every other area. I believe that particularly during the crisis we have to inform the market about our activities and our offers. In 2009 we shall spend z³.20 million on marketing," Pud³owski said.
The firm will place a strong emphasis on developing its online presence so that its share in total revenues leaps from 10% at present to 20% within 18 months.-----------------------------------------------------   
In a LOT of trouble
Matthew Day in Warsaw
business new europe
May 14, 2009
It is one of the world's oldest airlines, but a proud 80-year history of shuttling people around the globe may not be enough to save LOT Polish Airlines from bankruptcy.
The Polish state-owned company has endured a torrid time of late, and as the airline industry deals with the unexpected costs of swine flu, few expect LOT to escape yet more pain. More suffering could move the airline closer to the edge. Last year, it ran up unconfirmed losses of up to €162m, and the fact that the airline has delayed releasing its official results owing to discussions with its auditor over the 2009 budget has added to the swirl of unpleasant rumour surrounding it.
In particular, local newspapers have claimed that the airline now has trouble paying its bills as credit from unforthcoming banks dries up. Although LOT contests these reports, its denial has hardly been adamant. "Of course there are delays on some payments, but we are paying invoices," says Andrzej Kozlowski, spokesman for LOT. "We are in touch with business partners and are trying to coordinate the payments as much as we can."
Perfect storm
LOT's predicament reflects the problems faced by most of the world's airlines as they struggle to deal with the global recession. Passenger demand, according to the International Air Travel Association, "is falling in all regions" despite airlines cutting capacity.
LOT's woes, however, have been compounded a fuel hedging deal struck when global oil prices were surging. But instead of remaining high, as most expected them to, oil prices crashed, yet LOT has had to carry on paying the amount in its contract. To add insult to injury, the Polish zloty also began to lose value, adding to the strain the cost of aviation fuel has put on LOT's budget.
The Polish airline can take some limited consolation from many of its problems stemming from external, rather than operational, factors. But, says Geoff van Klaveren, an airline analyst at Exane BNP Paribas, LOT, like many small airlines, faces an uphill struggle. "There is a strategic issue in that most legacy airlines tend to have quite high cost bases," he says. "Now, the ones like KLM-Air France and BA have dealt with it by concentrating on long-haul premium traffic in order to cover their costs. The problem with the smaller network airlines, like LOT, is that they tend to be more short-haul focused, so bump up against the low-cost airlines much more frequently.
"Air France can say 'OK, we're prepared to lose out on market share to low costs on short haul because we're going to focus on long haul'. But LOT, which doesn't really have the scale or destinations and frequencies on long hauls, can't do this," he says.
Faced with mounting problems, LOT has started to nose around for a buyer.
With its good financial reserves and an appetite for expansion, Lufthansa has been touted as the most likely to buy into the ailing Polish airline, which is also part of the German carrier's Star Alliance.
But there are problems. To begin with, Lufthansa already has deals with three other airlines — BMI, Austrian and Brussels Airline — on its books and therefore could shy away from shelling out more cash for yet another carrier. On top of this, says Van Klaveren, Lufthansa prefers airlines that have restructured, which, he points out, is something LOT has singularly failed to do.
With Lufthansa a doubt, the Polish government said it will talk with Air France and BA to see if they're interested. If not, as a last resort the state could bail out LOT. But this could break European Union rules on state aid, so at the moment the airline's chances of survival appear slim.
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Post by Bonobo on Sept 21, 2009 21:10:59 GMT 1
LOT's CEO unveils his new strategy for the airline
The Polish airline plans to win a market share from low-cost competitors
The Warsaw Business Journal
10th September 2009
The president of national air carrier LOT Sebastian Mikosz has revealed details of the company's strategy which envisages a quick return to development and profit.
"We will strongly develop on the domestic market. We have given away regional airports, now we have to get them ba ck. A part of routes from these airports, especially in the south of Poland, could be launched already in early 2010," said Mr Mikosz.
He went on to add that the carrier will have to win over a large slice of the market share from low cost competitors. "I will also eventually be offering flights to Paris for z³.29. Of course there will only be a few seats on such a plane, but this is how low cost air carriers operate," added the president.
Company representatives are currently introducing a cost cutting program which aims at opening path to generating profits next year.
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Post by locopolaco on Sept 21, 2009 23:35:38 GMT 1
LOT's CEO unveils his new strategy for the airline
The Polish airline plans to win a market share from low-cost competitors
The Warsaw Business Journal
10th September 2009
The president of national air carrier LOT Sebastian Mikosz has revealed details of the company's strategy which envisages a quick return to development and profit.
"We will strongly develop on the domestic market. We have given away regional airports, now we have to get them ba ck. A part of routes from these airports, especially in the south of Poland, could be launched already in early 2010," said Mr Mikosz.
He went on to add that the carrier will have to win over a large slice of the market share from low cost competitors. "I will also eventually be offering flights to Paris for z³.29. Of course there will only be a few seats on such a plane, but this is how low cost air carriers operate," added the president.
Company representatives are currently introducing a cost cutting program which aims at opening path to generating profits next year. are they dropping their long distance flights? LOT is still the cheapest way to fly from here to PL. |
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Post by Bonobo on Sept 23, 2009 20:17:50 GMT 1
are they dropping their long distance flights? LOT is still the cheapest way to fly from here to PL. Of course not. But they have noticed that internal air transport is brings more profits every year. Poles spend quite a lot of money on consumption from Polish sources, that is one of the reasons Polish economy wasn`t so afflicted with crisis as other countries`. |
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Post by valpomike on Sept 23, 2009 21:50:37 GMT 1
I hope they don't sell, I use them each trip, a bit small, but good food and drink, and low cost.
Mike
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