Poland in Talks With Air China to Sell Stake in LOT Airlines: Report
Girish Shetti | | Aug 04, 2016 10:24 AM EDT |
(Photo : Getty Images) Poland’s government is said to be in negotiation with Air China to sell a 49 percent stake in LOT Airlines.
Poland's conservative government is in talks with China's Air China to sell a substantial stake in the state-owned Polish airlines LOT Airlines, Reuters reported.
The cash-strapped LOT airlines, has been struggling to compete against low-cost competitors and other bigger rivals in the aviation industry. The state-owned airline was given a bailout package of 500 million zlotys ($130 million) in 2012 to avoid bankruptcy.
Like Us on Facebook
"LOT is our national carrier, which we are trying to save no matter the cost. It is deeply in debt," Poland's Deputy Prime Minister Mateusz Morawiecki told news agency PAP.
Morawiecki added that the current government cannot offer another bailout package to LOT Airlines, and they are looking for an investor to revive the airline's fortune.
Earlier this week, a local Polish newspaper reported that China's state-owned carrier Air China has expressed interest in acquiring a 49 percent stake in LOT Airlines, with a top delegation from Air China expected to visit Warsaw city for negotiation in the coming days.
However, so far there has been no official confirmation from either Air China or LOT Airlines about the potential joint venture.
Poland's Supreme Audit Office revealed in April that despite bailout packages and improvement in operational efficiency, LOT has little chance to revive its fortunes without finding an outside investor.
A comparatively small airline carrier, LOT's number of widebody fleet will increase to just eight aircrafts as two newly acquired 787 Dreamliners joins operation next year. The airline company claims that it makes on average over 200 flights on a daily basis and carries nearly 5 million passengers every year.
TagsLOT Airlines, Air China, Ploand and China, Polish Airlines
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?