Polish airline LOT needs investor to survive

Flag carrier must find investor now, audit body warns
LOT Polish Airlines faces a financial crunch in 2016 and must quickly find an investor to survive, the country’s state audit body NIK warns.
Until now, restructuring and public funds have stopped the state-run flag carrier from going bankrupt and improved its financial situation, but still the airline is not on safe ground, the NIK report says.
“The critical time for the company will be the first half of 2016, when LOT faces the challenge of launching new destinations,” when a key problem will be how to finance the expansion, the analysis explains.
“The situation of the company remains serious, and without finding an investor the odds for surviving on the very competitive market are insignificant.”
LOT posted a net loss of PLN 250 million (€57 million) for 2015. The previous government spent years restructuring the company and trying to find an investor, but a new cabinet with a nationalist agenda in place since October says it does not want to privatise the carrier, even if capital injections are necessary.
bne Intellinews


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