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 www.lot.com and applications on smartphones and tablets. The carrier has also suspended a number of unprofitable services. [more - original PR]
LOT improves its results, will not apply for the second tranche of public aid
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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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