Poland's Treasury said LOT has applied for PLN400 million (USD127 million) as a first tranche of state aid, according to a report by Gazeta Wyborcza. Poland, which directly and indirectly controls 93% of LOT, has failed in its attempts to find an investor. Talks with Turkish Airlines collapsed several months ago. The Treasury did not say the total amount of state aid, although it is reported to total PLN1 billion (USD318 million). The carrier said it would radically restructure after receiving the funding LOT planned to apply for. LOT said: "I can only say that we will be conducting deep restructuring. We are meeting our workers tomorrow and this is when more information will be available".
LOT applies for state aid, seeking USD127m in first tranche: report
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LOT Polish Airlines: new LA service highlights value of long haul; short haul heat from LCCs remains
On 3-Apr-2017 LOT launched its longest direct service, between Warsaw and Los Angeles, deploying Boeing 787-8 aircraft. Los Angeles is LOT’s fourth North American destination and its first regular service to any US west coast destination. It is also the only direct flight anywhere between Central Europe and the US west coast. Warsaw-Newark and Krakow-Chicago route launches will follow later in summer 2017.
As it is with its other long haul routes, which also include three Asian destinations, LOT is aiming the new LA service not only at O&D traffic from Warsaw, but also squarely at passengers travelling to Southern California from across the Central European region. LOT is the only significant long haul operator in the region and the only one serving Los Angeles. Its Warsaw Chopin hub is the only airport between Vienna and Moscow with more than 1,000 long haul flights per year.
On short/medium haul, competition from LCCs Ryanair and Wizz Air is intense. Both have more seat capacity in Poland than LOT, whose new unbundled fare structure reflects the need to adopt some of their tactics. Long haul, where there is far less competition for LOT, is set to remain its strategic growth priority.
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