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LOT Polish Airlines will not seek any more public aid, will drop underperforming destinations during the winter season

LOT Polish Airlines (Warsaw) will not apply in September to the Treasury for payment of the second tranche of public aid. According to the airline, this is possible thanks to the promising results of the Restructuring Plan consistently implemented in the Company. At the same time LOT is introducing the flight schedule for the winter season 2013/2014 to its reservation systems. A new network is in line with the Restructuring Plan submitted by the Ministry of the Treasury to the European Commission. It is also a result of necessary compensation required by the European Commission.

The first tranche of aid for LOT was paid in December of last year. Disbursement of the second – in accordance with the Restructuring Plan submitted by the Ministry of the Treasury to the European Commission – was planned for August this year. Meanwhile, the Company has not applied for the second tranche in August and will not apply for it in September. An amount of the second tranche will be carefully assessed when the Company will apply to the Treasury for its payment. Perhaps this will happen only in October.

According to its underlying principles, the Company will achieve sustained profitability starting from 2015.

Consistently implemented restructuring measures include, among others, the network of destinations for the winter season. These changes are in line with the objectives of the Restructuring Plan submitted in June by the Ministry of Treasury to the European Commission. They are also a result of necessary compensation required by the European Commission. Within planned changes, destinations from Warsaw to Bydgoszcz, Rome and Stuttgart will be suspended from the beginning of the winter season 2013. In the coming months, passengers will also not find in the network flights to Beirut, Cairo and Nice, which are seasonal destinations. At the same time, like last winter, flights with the aircraft staying overnight from Warsaw to Stockholm will be suspended. This means two, not three flights a day to the Swedish capital.

The Polish carrier also decided to suspend flights from Warsaw to Zurich, Helsinki and Dusseldorf. These destinations did not generate enough transfer traffic for other LOT flights from Warsaw, especially the long haul which are key to the company’s long-term strategy.

Since, in accordance with assumptions, LOT focuses on expansion of its hub in Warsaw, there will be also less flights from Polish regional airports. In winter 2013, LOT aircrafts will not fly from Cracow to Frankfurt, from Poznan to Munich and from Katowice to Munich.

At the same time, flights from Warsaw to Yerevan, Athens and Belgrade will be unchanged in the coming winter season. Belgrade, one of the strongest destinations in the network of the Polish carrier, will continue to support the flow of transit passengers in their further travel to North America or other European ports. And Athens will remain in the flight schedule due to Greek Presidency of the European Union, which will begin on  January 1, 2014.

Copyright Photo: TMK Photography. LOT Polish has been gradually replacing its older Boeing 737 fleet with newer Embraer E-Jets. The remaining 737-400s are likely to be retired this winter with this schedule reduction. Boeing 737-45D SP-LLF (msn 28752) approaches Belgium for landing in the updated 2011 livery.

LOT Polish Airlines: AG Slide Show

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LOT Polish pulls the plug on Centralwings

 

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