LOT Polish Airlines deep in losses. About PLN 300 million predicted losses for 2015
LOT Polish Airlines deep in losses. About PLN 300 million predicted losses for 2015
LOT Polish Airlines are in big trouble and may wind up its business. Its losses for fiscal year 2015 are estimated to 300 million PLN, as Marcin Małecki, Member of Polish PArliament admitted. The future of the state-owned company is unclear. The company may have liquidity problems. The Malev scenario, known from Hungary, is quite possible. On 3 February 2012, Malév Hungarian Airlines stopped flying and on 14 February 2012 was declared insolvent and ordered liquidated by the Metropolitan Court of Budapest.
At the end of January 2012, MALÉV announced that it could no longer fund its own operations, and requested more subsidies from the Hungarian government. After having two planes seized at foreign airports by creditors, MALÉV immediately ceased all flight activity on 3 February 2012, after 66 years of continuous operation. The airline's total debts were 60 billion forints (US$270.5 million) at the time of shutdown.
LOT Polish Airlimes in recent month opened many new routes, however the financial situation of the company is bad, even in times of low fuel prices. An increase in fuel prices may signify an end to the history of LOT POlish Airlines. The carrier found itself "nearly insolvent" already once or twice in 2012 and in 2013. The company lost liquidity and then received various subsidies. European Commission accepted 400 million PLN of public subsidy to the company in May 2013. Other subsidies paid to the company (due to the outright sale of LOT assets to other state-owned companies) amounted to PLN 2 billion, according to Małecki.
Source: audio recording in the Catholic pro-governmental radio station
http://www.radiomaryja.pl/multimedia/dramatyczna-sytuacja-spolki-pll-lot/
LOT Polish Airlines are in big trouble and may wind up its business. Its losses for fiscal year 2015 are estimated to 300 million PLN, as Marcin Małecki, Member of Polish PArliament admitted. The future of the state-owned company is unclear. The company may have liquidity problems. The Malev scenario, known from Hungary, is quite possible. On 3 February 2012, Malév Hungarian Airlines stopped flying and on 14 February 2012 was declared insolvent and ordered liquidated by the Metropolitan Court of Budapest.
At the end of January 2012, MALÉV announced that it could no longer fund its own operations, and requested more subsidies from the Hungarian government. After having two planes seized at foreign airports by creditors, MALÉV immediately ceased all flight activity on 3 February 2012, after 66 years of continuous operation. The airline's total debts were 60 billion forints (US$270.5 million) at the time of shutdown.
LOT Polish Airlimes in recent month opened many new routes, however the financial situation of the company is bad, even in times of low fuel prices. An increase in fuel prices may signify an end to the history of LOT POlish Airlines. The carrier found itself "nearly insolvent" already once or twice in 2012 and in 2013. The company lost liquidity and then received various subsidies. European Commission accepted 400 million PLN of public subsidy to the company in May 2013. Other subsidies paid to the company (due to the outright sale of LOT assets to other state-owned companies) amounted to PLN 2 billion, according to Małecki.
Source: audio recording in the Catholic pro-governmental radio station
http://www.radiomaryja.pl/multimedia/dramatyczna-sytuacja-spolki-pll-lot/
Posted by Adam Phoo
on 10:59.
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