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Posted on Thursday, April 30 @ 15:33:04 BST by upsmd11f
Poland's national carrier,LOT Airlines experienced a loss in 2008 of 700 Million Zlotys(155 Million Euro).The carrier could go bankrupt in a matter of weeks if new investors are not found.
More than 300 million Zlotys of that loss came from contracts signed last year for fuel when oil prices were at their highest.
LOTs financial situation is so bad that an auditor is refusing to sign the annual balance sheet.
LOTs only hope is to find new investors or be taken over by a competitor if they are to survive.
The airline was heavily capitalized by the state back in 2001 and can not be bailed out again by the Polish Government as this would contravene competition rules laid down by the European Commision.
Recently LOT has been taking measures to deeply restructure the business,last month it liquidated it's Low-cost subsidary Centralwings(now LOT charters).
Now the company is looking to make heavy staff cuts,though trade unions are expected to resist.
A trade unionist at LOT ground services(LGS) told newspaper Rzeczpospolita "We will take strike action and simply stop loading aircraft"
Last year LOT turned to Lufthansa for help but were turned down by the German flag Carrier.
Although the demise of LOT would be disastrous for Poland it could open up the routes to Foreign airlines who so far have been held back by the Polish Government to protect their investment in LOT.
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