LOT airlines to make 700 redundant?

Sebastian Mikosz: photo PR/W.Kusiński

“At the moment negotiations are under way,” Mikosz said Thursday morning, referring to the number of staff to lose their jobs at an airline which currently employs 2100 and which recorded net losses of 157.1 million zloty (38 million euros) in 2012.

In 2011, the company was 145.7 million zł in the red.

In December, the government agreed an emergency loan of 100 million euros with LOT, in which the state is a majority share holder, under the condition that a radical restructuring package is implemented.

Part of the package was the removal of Marcin Piróg as CEO.

In February the national carrier announced that Sebastian Mikosz would take over the ailing airline and attempt to return it to profit and then privatise it.

“The airline must fight for passengers and influence,” Mikosz told Polish Radio, adding, however, that “we must cut costs”.

LOT's woes increased in January when its two, new, Boeing 787 Dreamliners were part of a word-wide grounding of the aircraft after battery failures led to safety fears.

The PAP news agency reported last week that, according to the Treasury Ministry, the inactive Dreamliners were causing LOT to lose 150,000 zloty (35,000 euro) a day, without taking into account the cost of passenger complaints and some other costs. (pg)