Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Polish Gov To Sell LOT  
User currently offlineely747 From Slovakia, joined Jan 2013, 140 posts, RR: 0
Posted (1 year 5 months 5 hours ago) and read 8961 times:

The article claims that THY have lost interest, who else could be ready to invest then ?

http://www.businessweek.com/news/201...rs-way-for-disposal-of-lot-airline

31 replies: All unread, showing first 25:
 
User currently offlineAirCanadaA330 From Canada, joined Aug 2008, 294 posts, RR: 0
Reply 1, posted (1 year 5 months 5 hours ago) and read 8855 times:
Support Airliners.net - become a First Class Member!

I thought they were already trying to sell off LOT?

I would think LH would be interested, but I think they might not have the stomach for it



Cheers;
User currently offlineely747 From Slovakia, joined Jan 2013, 140 posts, RR: 0
Reply 2, posted (1 year 5 months 4 hours ago) and read 8770 times:

I was thinking about LH too but not sure if they are in good condition these days either. LOT has got some valuable assets like LHR, JFK and ORD slots. Not long ago there was a story about significant reduction of Embraer fleet which raises questions on sustainability of airline's business model. The Polish carier is the only one in central Europe currently operating TATL however I dare say it's mostly VFR.

[Edited 2013-04-02 15:27:31]

User currently offlineLAXintl From United States of America, joined May 2000, 25166 posts, RR: 48
Reply 3, posted (1 year 5 months 4 hours ago) and read 8603 times:

TK decided to pass on LOT and broke off discussions last June.

Turkish Airlines will not invest in LOT Polish Airlines
http://atwonline.com/news/turkish-ai...ill-not-invest-lot-polish-airlines

As they said: "the acquisition would not bring the medium- to long-term growth initially envisioned or give an improved and sustainable competitive advantage."

For other airlines -- Seems everyone window shops, and then walks away.

SAS And BA To Buy LOT (by TR Oct 3 2001 in Civil Aviation)
LH In Talks With LOT Polish Airlines (by Jiml1126 Dec 20 2001 in Civil Aviation)
LOT To Be Bought By Lufthansa? (by Squirrel83 May 5 2005 in Civil Aviation)
AF/KLM Enters Bid To Buy LOT (by Konrad Jan 20 2010 in Civil Aviation)

=



From the desert to the sea, to all of Southern California
User currently offlineLAXintl From United States of America, joined May 2000, 25166 posts, RR: 48
Reply 4, posted (1 year 5 months 4 hours ago) and read 8555 times:

Quoting ely747 (Reply 2):
JFK and ORD slots.

ORD airport no longer is slot controlled as of October 2010, and JFK slot is worthless as it cannot be sold/leased by foreign carriers.



From the desert to the sea, to all of Southern California
User currently offlineAirCanadaA330 From Canada, joined Aug 2008, 294 posts, RR: 0
Reply 5, posted (1 year 5 months 3 hours ago) and read 8438 times:
Support Airliners.net - become a First Class Member!

Quoting LAXintl (Reply 4):
JFK slot is worthless as it cannot be sold/leased by foreign carriers.

why not?

Quoting LAXintl (Reply 3):

For other airlines -- Seems everyone window shops, and then walks away.

SAS And BA To Buy LOT (by TR Oct 3 2001 in Civil Aviation)
LH In Talks With LOT Polish Airlines (by Jiml1126 Dec 20 2001 in Civil Aviation)
LOT To Be Bought By Lufthansa? (by Squirrel83 May 5 2005 in Civil Aviation)
AF/KLM Enters Bid To Buy LOT (by Konrad Jan 20 2010 in Civil Aviation)

well if no one wants LOT, I'll take it....  



Cheers;
User currently offlinekrisyyz From Canada, joined Nov 2004, 1593 posts, RR: 0
Reply 6, posted (1 year 5 months 3 hours ago) and read 8369 times:

Quoting ely747 (Thread starter):
who else could be ready to invest then ?

Maybe Boris Abramovich? He seems to have an interest in Eastern European Airlines, and quite the track record   

My guess would be an investor or airline from Asia, LH is still a possibility but I'm not convinced that deal would go through.

I've often suggested an SAS kind of alliance for eastern-central Europe, with hubs in WAW, PRG and BUD. Given the current economic climate in Europe, I really don't think even a large country like Poland can sustain a profitable national airline. LH/LX/OS, KL/AF and BA/IB are really hard to compete against on the medium to long haul full service market.

Just my thoughts,

KrisYYZ


User currently offlineMCOflyer From United States of America, joined Jun 2006, 8671 posts, RR: 15
Reply 7, posted (1 year 5 months 2 hours ago) and read 8244 times:

My guess is LH. They seem to do well turning non-profitable airlines into money making ones.

KH



Never be afraid to stand up for who you are.
User currently offlineKD5MDK From United States of America, joined Mar 2013, 318 posts, RR: 0
Reply 8, posted (1 year 4 months 4 weeks 1 day 20 hours ago) and read 7771 times:

IAG  

Just to mess with LH and get some Eastern European coverage. Hedge for when AB closes.


User currently offlineAF185 From Hong Kong, joined Sep 2012, 257 posts, RR: 0
Reply 9, posted (1 year 4 months 4 weeks 1 day 20 hours ago) and read 7721 times:

LH seems like the ideal candidate (*A, proximity of the market, Door to Eastern Europe), however I think this is really open and we may have surprises in this bid.

With the current difficulties in Europe, we see:

> IAG struggling in restructuring IB, biding for Vueling
> AF-KL having a deep short/medium haul re-organization, trying to cut costs and initiating cooperation with EY
> LH trying to cut costs, considering setting up a long haul low cost operation

All 3 major European Airline Groups already have a lot on their plate, not sure bringing another loss making airline would help them in the current environment, unless LOT is sold for an attractive price


User currently offlinesmbukas From Lithuania, joined Feb 2009, 200 posts, RR: 0
Reply 10, posted (1 year 4 months 4 weeks 1 day 20 hours ago) and read 7646 times:

I do not see any point for LH from network perspective. Door to Eastern Europe has zero value - LH flies where they wants and LOT do not have any destination LH do not operate.

From other perspective LH anyway has a strong market share in Polish market: 4x daily FRA-WAW on LH metal, 3x daily MUC-WAW on LH metal, 3x daily FRA-KRK on LH metal, etc., etc. Even if LOT leave a Star Alliance and to drop all LH codeshares, it is very small loss for LH as they will have an opportunity to increase capacity where they wants.

LH also operate all the Eastern Europe destinations where LOT is strong - VNO, BUD, BUC, PRG, etc. And, from network perspective, if LOT would leave long haul LH could become even happier, as most of the passengers choose LH as alternative option to ORD, JFK, etc.


User currently offlineLOWS From Austria, joined Oct 2011, 1141 posts, RR: 1
Reply 11, posted (1 year 4 months 4 weeks 1 day 19 hours ago) and read 7577 times:

LH already has excellent east European coverage through itself, and also OS (who owns a share of, and codeshares with PS). In addition to the current restructuring, the planned future purchase of SN and OS' problems, why would they want another airline?

In addition, I can hardly imagine the European Commission being happy with LH owning or cooperating with almost every airline that borders Germany or very nearly does (OS, LX, SK, SN, LO, EN...).


User currently offlineDanny From Poland, joined Apr 2002, 3509 posts, RR: 2
Reply 12, posted (1 year 4 months 4 weeks 1 day 19 hours ago) and read 7483 times:

LH does not need LO for anything. They fly directly from FRA/MUC/DUS to almost all of polish airports and have already taken over most of premium customers.

User currently offlineDIJKKIJK From France, joined Jul 2003, 1791 posts, RR: 4
Reply 13, posted (1 year 4 months 4 weeks 1 day 15 hours ago) and read 7114 times:

One of the Gulf biggies may definitely be interested. EY perhaps? They are on an acquisition spree right now.


Never argue with idiots. They will bring you down to their level, and beat you with experience.
User currently offlineJU068 From Vanuatu, joined Aug 2009, 2605 posts, RR: 6
Reply 14, posted (1 year 4 months 4 weeks 1 day 14 hours ago) and read 6585 times:
Support Airliners.net - become a First Class Member!

Unfortunately for Lot, Poland is a predominantly low-yielding market dominated by lowcost carriers. The only way I can see them surviving is by copying what Lufthansa was forced to do.
Why don't they change their European operations to model a lowcost carrier (or at least something close to it) while their intercontinental flights keep on operating as Lot.

Unfortunately I do not see anyone buying them.


User currently offlinekonrad From United States of America, joined Mar 2002, 525 posts, RR: 0
Reply 15, posted (1 year 4 months 4 weeks 1 day 14 hours ago) and read 6442 times:

Quoting JU068 (Reply 14):
Why don't they change their European operations to model a lowcost carrier (or at least something close to it) while their intercontinental flights keep on operating as Lot.

They do not have the right aircraft to switch to the lowcost model. With a E70, E75 and E95 fleet there is no way to compete with the 320/738 carriers. Plus, the DH4s of EuroLOT are also kind of odd, doing pretty much the same routes as the Embraers. With the Embraers, they might do an Air Dolomiti model if anyone wants them to feed some hubs.


User currently offlinePolot From United States of America, joined Jul 2011, 2159 posts, RR: 1
Reply 16, posted (1 year 4 months 4 weeks 1 day 14 hours ago) and read 6355 times:

Quoting MCOflyer (Reply 7):
My guess is LH. They seem to do well turning non-profitable airlines into money making ones.

Actually LH's record is spotty at best. OS is still unprofitable, SN (who admittedly LH does not fully own) is not profitable, they weren't able to make BMI work, they were unable to make LH Italia work. LX was truly a success story, which has unfortunately gave many people the impression that LH is the master at turning airlines around.

As much as I would hate to see them go, only a fool would touch LOT.


User currently offlinedelta777jet From Germany, joined Jun 2000, 1259 posts, RR: 3
Reply 17, posted (1 year 4 months 4 weeks 1 day 14 hours ago) and read 6337 times:

LOT can't be sold, mainly because of the reasons mbukas was mentioning.
In LOT eyes Lufthansa is a strong partner on side, of which they are proud of. May be too proud.....
It seems that many inside LOT did not understood the reality yet, that Lufthansa is very strong in Polish market. The frequent flyer program of LOT is called Lufthansa Miles & More. In case LOT will be sold, LOT would also loose all their frequent flyers to Lufthansa because they will stay inside the Lufthansa Miles & More program and probably LOT would loose all the money value created in Lufthansa Miles & More as well.

To take LH Miles & More for their own frequent traveller programme was probably the worse decision they could have made years ago, as this will be the main problem to sell LOT to any other airline. Also they would need to purchase every mile credited into the Miles & More program, which for sure is also a pain for a cash strapped airline.

For Lufthansa the best is that LOT continues in the same way as they did, because they just bringing a lot of profit to Lufthansa without to have any headache for the entire Polish market.



Fly easyJet
User currently offlineJU068 From Vanuatu, joined Aug 2009, 2605 posts, RR: 6
Reply 18, posted (1 year 4 months 4 weeks 1 day 13 hours ago) and read 6005 times:
Support Airliners.net - become a First Class Member!

Quoting konrad (Reply 15):

From what I read they are withdrawing a whole bunch of Embraer jets and they will be introducing Boeing aircraft, B737-800, into their fleet.


User currently offlineely747 From Slovakia, joined Jan 2013, 140 posts, RR: 0
Reply 19, posted (1 year 4 months 4 weeks 1 day 13 hours ago) and read 5720 times:

Quoting KD5MDK (Reply 8):

Doubt that yields in that part of Europe are of any interest to IAG.


User currently offlineORDJOE From United States of America, joined Aug 2010, 701 posts, RR: 0
Reply 20, posted (1 year 4 months 4 weeks 1 day 12 hours ago) and read 5516 times:

Too bad LOT is doing so bad, they actually run a decent product in the sky, and with that 787 mess. As an armchair CEO they need to focus on any business heavy routes they have. Poland while lacking an economy of the likes of Germany or Swisszertland still is decent sized and growing, so there has to be a decent amount of business traffic. They need to focus on routes like that and not compete against Wizz air or the like for the bottom feeding VFR crowd.

User currently offlineRedd From Poland, joined Jan 2013, 96 posts, RR: 0
Reply 21, posted (1 year 4 months 4 weeks 1 day 7 hours ago) and read 3047 times:

Quoting krisyyz (Reply 6):
He seems to have an interest in Eastern European Airlines,

Poland is not in Eastern Europe....

Quoting JU068 (Reply 14):
Unfortunately for Lot, Poland is a predominantly low-yielding market dominated by lowcost carriers.

Business traffic is on a steady rise, nothing crazy but it's growing.

Quoting JU068 (Reply 14):
Why don't they change their European operations to model a lowcost carrier (or at least something close to it) while their intercontinental flights keep on operating as Lot.

I've been wondering the same thing. With Ryanair operating out of WAW at the moment due to the closure of Modlin they have to be hurting LOT's business. The fact is that you can get VERY cheap tickets on other airlines to just about anywhere in Europe on LLCs and LOT's tickets are usually at least twice as expensive. I'm no expert in the matter but I think LLC model for LOT in Europe seems like a good idea.

[Edited 2013-04-03 13:07:53]

User currently offlinekrisyyz From Canada, joined Nov 2004, 1593 posts, RR: 0
Reply 22, posted (1 year 4 months 4 weeks 1 day 5 hours ago) and read 2284 times:

Quoting Redd (Reply 21):
Poland is not in Eastern Europe....



I know, my relatives in Hungary hate being refered to as living in Eastern Europe as well. But according to the UN, Poland is in Eastern Europe.

http://unstats.un.org/unsd/methods/m49/m49regin.htm

KrisYYZ


User currently offlineely747 From Slovakia, joined Jan 2013, 140 posts, RR: 0
Reply 23, posted (1 year 4 months 4 weeks 1 day 3 hours ago) and read 2144 times:

Quoting Redd (Reply 21):

On the political map all countries east of german border are referred to as Eastern Europe

Geographically AT, SK, CZ, PL, HU and SLO are all in Central Europe. For instance Vienna is further to the east than Prague.


User currently offlineLAXintl From United States of America, joined May 2000, 25166 posts, RR: 48
Reply 24, posted (1 year 4 months 4 weeks 1 day 3 hours ago) and read 2125 times:

Quoting AirCanadaA330 (Reply 5):
why not?

Slots exemptions are not owned by the foreign airlines, essentially only being borrowed from the FAA.



From the desert to the sea, to all of Southern California
25 nomorerjs : Maybe the People's Republic of Chicago / Illinois will buy LOT. Seems like the type of thing Illinois tax-payers are on the hook for.
26 type-rated : Chicago certainly has a large enough Polish population. The largest in the U.S. if I am not mistaken and LOT seemed to be doing well with their fligh
27 JU068 : But I guess another problem is that this business traffic is not only generated by Warsaw, since Poland is very decentralized. This makes Lot's life
28 Post contains links Paolo92 : @lufthansa_usa is ready to expand into Scandinavia and Poland if #SAS or #LOT were to liquidate, says CFO Menne— Edward Russell (@e_russell) March 2
29 Post contains links bennett123 : http://www.airfleets.net/ageflotte/LOT%20Polish%20Airlines.htm Even given that the B767 will go when they finally get the B787 back into service, it i
30 smbukas : If they are out of charter business I do not see why they need bigger aircraft. AFAIK, their fleet strategy is to have E-Jets, 787 and subcontract tu
31 JU068 : I guess this could be a message to the Polish government just in case the privatization fails. If they do step in after Lot's failure then I guess it
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
ANZ CEO Expects Gov. To Sell 82% Stake posted Mon Apr 29 2002 03:56:58 by Jiml1126
Polish Gov't To Restrict Foreign Charter Airlines posted Thu Mar 14 2002 03:27:04 by Lindy field
LOT Polish 787 To ORD January 2013 posted Wed Mar 28 2012 16:08:48 by timberwolf24
LOT Polish Airlines To Start PEK & PVG? posted Sun Jul 29 2007 02:58:06 by Xiaotung
LOT Polish Airlines To Buy Airbus?!? posted Sun Jun 22 2003 04:00:22 by EmiratesA345
Polish Air Carrier PLL LOT To Buy Embraer Planes posted Fri Jan 10 2003 16:14:45 by Flyingbronco05
LOT Polish Airlines To Join *Star Alliance* posted Thu Apr 4 2002 16:19:49 by KrisworldB777
MAS To Sell Aircraft To Gov't? posted Sat Aug 18 2001 12:13:53 by Mas777
TNT Sees Big Loss; Plan To Sell Units Individually posted Mon Feb 18 2013 09:39:01 by LAXintl
Boeing Needs To Sell More 747 posted Thu Feb 14 2013 22:34:41 by olle