LOT POLISH AIRLINES, which is majority state-owned, wants to float on the Warsaw Stock Exchange early next year, its chief executive has told Polish media. Marek Grabarek said the airline needed capital and an initial public offering would be the best way to secure it. LOT is in talks with the Treasury Ministry and decisions regarding extra funds for financing are likely to be made this year in time for a debut next spring. The Polish government has long held ambitions to dispose of its 68% stake in the airline as part of a strategy to raise funds through the privatisation of state-run companies. However, it first wants LOT to improve its financial performance to make it more attractive to investors.
The government agreed a 400 million Zlotys (”68 million) recapitalisation for Star Alliance member LOT after the 9/11 terrorist attacks to help it to stay afloat. Last year, despite carrying a record 3.74 million passengers, LOT reported a loss of 48 million Zlotys (”7.5 million) as the Iraq war and SARS outbreak hit demand. It expects to post a small profit this year as a result of a wide-ranging cost cutting programme. In addition to the government, LOT's other shareholders are its employees (7%) and Swissair successor Swiss International Airlines (25%).
http://www.lot.com