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LOT Polish Airlines planning to introduce new cost reduction scheme in Apr-2010

31-Mar-2010 10:47 AM

LOT Polish Airlines is reportedly planning to introduce a new cost-reduction scheme in Apr-2010, which includes 20% salary reductions and a reduction in the workforce of 10% (approximately 400 jobs across the 3,500-employee workforce) (Thenews, 30-Mar-2010). The company hopes to reduce costs by approximately EUR13 million through these measures. The carrier also plans to simplify the salary systems, from 148 different posts, to 30 administration, 20 technical and five cabin crew posts. The carrier is also seeking to reduce the number of organisational units and heads of departments. A new collective agreement is also being drafted for discussion with trade unions. Meanwhile, four investors, including KLM, are reportedly considering purchasing LOT shares, with the carrier's privitisation scheduled for the end of 2010 or early 2011.