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LOT improves its results, will not apply for the second tranche of public aid

5-Sep-2013 11:07 AM

LOT Polish Airlines stated (04-Sep-2013) it would not apply in Sep-2013 to the Treasury for payment of the second tranche of public aid. The carrier said 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 Dec-2012 and disbursement of the second was planned for Aug-2013, although the carrier has not applied for this in either Aug-2013 or Sep-2013. The company noted, "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". LOT Polish Airlines Sebastian Mikosz explained, "Improved financial performance, and thus the delayed application for the second tranche,
 is an effect of consistently implemented restructuring measures. Thanks to them, the result of the core business in the first half of the year was better by 29 million than assumed in the plan. Next months also fit in with this positive trend . The improved result is possible mainly due to sharp costs cutting, while enhancing sales and due to changes in the offer aimed to generate additional revenue". The carrier also outlined how it has, in recent months, ntroduced several new services for passengers as well as a new standard of service for European services. Distribution channels have been extended 
by introduction of a mobile version of and applications on smartphones and tablets. The carrier has also suspended a number of unprofitable services.  [more - original PR]