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LOT Bankrupt But Still Take Delivery Of New E195  
User currently offlineapruzesse13 From Ukraine, joined Dec 2012, 34 posts, RR: 0
Posted (1 year 6 months 3 weeks 3 days 8 hours ago) and read 12466 times:

http://www.skyliner-aviation.de/regdb.main?LC=nav4&page=4

How do they find willing banks?

14 replies: All unread, jump to last
 
User currently offlineJU068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 1, posted (1 year 6 months 3 weeks 3 days 8 hours ago) and read 12437 times:
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If I am not mistaken the European Union approved a rescue package from the Polish government to the airline. However, LOT has to restructure and lose some of its workforce.

User currently offlineapruzesse13 From Ukraine, joined Dec 2012, 34 posts, RR: 0
Reply 2, posted (1 year 6 months 3 weeks 3 days 8 hours ago) and read 12334 times:

Quoting JU068 (Reply 1):
If I am not mistaken the European Union approved a rescue package from the Polish government to the airline. However, LOT has to restructure and lose some of its workforce.

1.European Union is currently investigating the compatibility of the rescue loan with EU rules

2. The loan is an emergency cash injection-albeit significant- but can in no way reassure a bank financing an aircraft over 15 years that such money-loosing company like LOT will still pay its debt in 2 years time


User currently offlineJU068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 3, posted (1 year 6 months 3 weeks 3 days 8 hours ago) and read 12232 times:
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Quoting apruzesse13 (Reply 2):
1.European Union is currently investigating the compatibility of the rescue loan with EU rules

I think the European Union is done with the investigation and that it said it was in line with EU regulations. Currently airBaltic and Adria are under investigation.



Quoting apruzesse13 (Reply 2):
2. The loan is an emergency cash injection-albeit significant- but can in no way reassure a bank financing an aircraft over 15 years that such money-loosing company like LOT will still pay its debt in 2 years time

Well I am sure that the Polish government is guaranteeing the payment, otherwise it would have been too risky.


User currently offlineBuyantUkhaa From Mongolia, joined May 2004, 2899 posts, RR: 3
Reply 4, posted (1 year 6 months 3 weeks 3 days 7 hours ago) and read 11943 times:

Quoting JU068 (Reply 3):
I think the European Union is done with the investigation and that it said it was in line with EU regulations. Currently airBaltic and Adria are under investigation.

That was the sell-off of some company entities to other state-owned bodies: http://europa.eu/rapid/press-release_IP-12-1243_en.htm

The rescue loan is a different one, this happened Dec 21st, and the EC is still to rule on it.



I scratch my head, therefore I am.
User currently offlineDanny From Poland, joined Apr 2002, 3509 posts, RR: 2
Reply 5, posted (1 year 6 months 3 weeks 3 days 1 hour ago) and read 11151 times:

LOT is not bankrupt (at least not yet).

User currently offlinepeterinlisbon From Portugal, joined Jan 2006, 523 posts, RR: 0
Reply 6, posted (1 year 6 months 3 weeks 2 days 23 hours ago) and read 9651 times:

It's great that we have the EU to help ensure that our national airlines go bankrupt, I bet the Hungarians are very glad they joined.

User currently offlineThomasCook From United Kingdom, joined Aug 2004, 796 posts, RR: 8
Reply 7, posted (1 year 6 months 3 weeks 2 days 22 hours ago) and read 9436 times:

The only people who would benefit from the EU ruling against aid for LOT are Ryanair and Wizzair. The Polish economy and people certainly would not benefit in any way shape form. It is in Poland's very best interests to ensure LOT remain the national carrier and maintain direct links to America and Canada.

ThomasCook



A380 Crew
User currently offlinelightsaber From United States of America, joined Jan 2005, 13124 posts, RR: 100
Reply 8, posted (1 year 6 months 3 weeks 2 days 13 hours ago) and read 4568 times:
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Normally I am against government intervention. However, with restructuring, I see a 'business case' for the Polish government to rescue LOT assuming they do reorganize (unlike certain other airlines that always re-subsidize).

Quoting ThomasCook (Reply 7):
The only people who would benefit from the EU ruling against aid for LOT are Ryanair and Wizzair. The Polish economy and people certainly would not benefit in any way shape form. It is in Poland's very best interests to ensure LOT remain the national carrier and maintain direct links to America and Canada.

The links would be replaced on long haul. I see more of the value in LOT domestic and regional by creating connections that enable business in Poland.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineLO231 From Belgium, joined Sep 2004, 2392 posts, RR: 22
Reply 9, posted (1 year 6 months 2 weeks 4 days 18 hours ago) and read 2753 times:

Quoting ThomasCook (Reply 7):

I need to visit my brother in Warsaw in July. Ryanair and Wizz from BRU/CRL are more expensive by 1 EUR than LO.....

And one question, I fly with E95. Return is on 734, I thought they gave up shorthaul Boeing fleet for Embraer?

Regards,

LO 231



Got both LO 788 frames already, next LO E95 and 734 BRU-WAW-BRU
User currently offlineBestWestern From Hong Kong, joined Sep 2000, 7152 posts, RR: 57
Reply 10, posted (1 year 6 months 2 weeks 4 days 18 hours ago) and read 2665 times:

Quoting lightsaber (Reply 8):
I see a 'business case' for the Polish government to rescue LOT assuming they do reorganize (unlike certain other airlines that always re-subsidize).

LO have re-organised plenty of times. They have a new CEO each year, and a new plan every two years.

Until LOT really decides what they are as an airline, they have no future.



The world is really getting smaller these days
User currently onlineMaverickM11 From United States of America, joined Apr 2000, 17503 posts, RR: 45
Reply 11, posted (1 year 6 months 2 weeks 4 days 17 hours ago) and read 2602 times:

Quoting lightsaber (Reply 8):

The links would be replaced on long haul.

Would they? How are those long haul flights coming at BUD? If LO were to go away, which I doubt will happen, I don't see anyone backfilling the longhaul flying. Maybe the odd TS seasonal nonstop...



E pur si muove -Galileo
User currently offlineJU068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 12, posted (1 year 6 months 2 weeks 4 days 17 hours ago) and read 2587 times:
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Quoting MaverickM11 (Reply 11):

Not to mention that unlike Hungary, Poland is decentralized so long haul out of Warsaw were possible to this extent only because of LOT's network.


User currently offlineLO231 From Belgium, joined Sep 2004, 2392 posts, RR: 22
Reply 13, posted (1 year 6 months 2 weeks 3 days 9 hours ago) and read 2136 times:

Quoting lightsaber (Reply 8):

You mean LO being next LH Regional?



Got both LO 788 frames already, next LO E95 and 734 BRU-WAW-BRU
User currently offlineBestWestern From Hong Kong, joined Sep 2000, 7152 posts, RR: 57
Reply 14, posted (1 year 6 months 2 weeks 3 days 5 hours ago) and read 1993 times:

Quoting JU068 (Reply 12):

And without the short haul network, there will be no long haul feed.



The world is really getting smaller these days
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