LOT must shrink to stay afloat

15 February 2013

The European Commision is expected to present changes it would like to see in Poland’s national airline operator LOT before granting the carrier a PLN 400m loan. “We’re prepared to take all necessary steps to save the company,” said Sebastian Mikosz, LOT’s new head. According to to the daily Puls Biznesu, the EC may push LOT to reduce its aircraft fleet by 15 planes. The commission could also demand lower operating costs and and a smaller capacity from the operator. LOT must present its new restructuring plan by June 20. Talks with the EC are currently underway. The company recently announced plans to fire 500 employees, which is reportedly part of its far-reaching restructuring plan.

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