LOT still in the woods, even though Boeing bolster books with payment agreement

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP December 12, 2013 20:27

LOT still in the woods, even though Boeing bolster books with payment agreement

LOT Polish Airlines, which is still under the microscope of the European Commission after the $127m government loan last December, looks to be pulling back from the brink with a projected operating loss of $6.6 million for this fiscal year from a projected $47 million loss earlier. The airline, although cutting costs rapidly, has still seen passenger numbers fall by 3% but this is due to deep rationalisation. The airline states that the 787 is starting to show its true worth and it is the “787 factor” that has allowed LOT to pull-back from the brink in the short term. Airline Economics understands though that much of this 787 gain running through the books is in fact compensation from Boeing due to the 787 failures. This is on top of the fact that the next 787 due for delivery will have to be leased because the airline will not be able to use the aircraft under the current terms of its restructuring plan logged with the EC. LOT still has a gulf to fill in the near term to meet current working capital requirements and a government loan surly cannot go forward while the EC is investigating the last one. Thus LOT remains in deep trouble unless a buyer can be found fast.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP December 12, 2013 20:27
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Flot-still-in-the-woods-even-though-boeing-bolster-books-with-payment-agreement%2F"> registered </a> users can comment.