Poland's flagship airline PLL LOT to cut labor force by one third
January 7, 2013
Poland's flagship airline carrier PLL LOT may have posted an even PLN 200 million loss in 2012 and will downsize its labor force by at least 30% already in Q1 2013, Treasury Minister Mikolaj Budzanowski said in parliament on Friday.
"LOT's loss may have amounted to even PLN 200 million in 2012," Budzanowski said. LOT will need radical restructuring including reducing the labor force by at least 30% and fleet restructuring, the minister added.
On December 14, LOT saw its supervisory board sack CEO Marcin Pirog. The decision was earlier flagged by Budzanowski, who said that the ministry expects the carrier’s supervisory board to make the CEO accountable for the current situation of the company.
Earlier, LOT applied for PLN 1 billion worth loan in the frame of state aid, according to state office UOKiK. The company had already received a PLN 400 million loan from the State Treasury.
LOT wants to break even in 2014, while cutting costs across the board, according to the restructuring plan presented by the management in mid-December.
LOT will optimize its network of connections and the use of aircraft. The carrier may reduce the number of planes in operation but will make better use of those at hand, PPL LOT spokesman Leszek Chorzewski said. All of those efforts are expected to bring PLN 300 million savings, Chorzewski added.
LOT recorded a PLN 145.5 million loss in 2011 and PLN 163.1 million loss in 2010.