LOT has found serious investor. It’s the end of the carrier’s problems? – Virtual Poland

Airlines, the national carrier, which in 2012 was on the brink of bankruptcy and survived thanks to more than 500 million of state aid, found serious investor – says the “Puls Biznesu”.

Developer Wizz Aira, Indigo Partners, is ready to spend hundreds of millions of dollars.
“The fund wants to invest in LOT and finance development of the company. If the Treasury Ministry will sign a letter of intent with the fund, will begin negotiations the final investment agreement “- the source said the newspaper.

-” Its object will not be selling shares, but raise capital. Indigo is ready to invest in LOT in various forms, even a few hundred million “- provides informant Puls Biznesu.

The negotiations are involved, in addition to the Treasury, the Board of LOT and consultant – the company Rotschild.

The Polish carrier for years struggled with financial problems. It was only in 2014 developed – the first time in seven years – a profit for the carriage of passengers. Over the past 10 years, LOT has achieved a positive result only twice, and it was in times of exceptionally good market situation, that is in 2005. And 2007.

Last year, LOT Polish Airlines had 99.4 million profit on its core business to 71 million zł plan. This is the result of nearly 30 million better than planned Restructuring Plan and $ 103 million higher than in 2013. The company is steadily improving their situation stabilizes finances and getting ready for the intensive development of next year.

The plan for this year It involves 124 million zł outcome on core business. 90 percent. restructuring initiatives foreseen in the plan have already been implemented carrier.

According to the assumptions carrier LOT this year will be about 4.75 million passengers, or the number of passengers will remain at a level similar to 2014. when transported 4.78 million people. The results confirm the validity of the national carrier a very difficult decision to award those LOT aid and accept its restructuring plan.

An alternative to granting those LOT public aid was bankruptcy – the loss of more than fifteen hundred jobs in the company and a further tens of thousands in cooperating companies.