Funds to be used to refinance fleet

Published: 3/10/2000

Following the agreement signed on November 18th 1999 by the Swiss company Sair Group to increase its equity in the Polish airline, Polskie Linie Lotnicze (LOT) to 37.6%, reports say that the company has paid the Polish Treasury Ministry US$ 150m for the stake. According to LOT, the funds would be used primarily to refinance LOT's leased fleet and the company reported at the time the agreement was signed that it was 'very pleased to have found a partner of such wide renown as Swissair' while Philippe Brugisser, Chief Executive Officer of the Sair Group pointed out the significance of the large potential for growth in the markets of Poland and Eastern Europe. 'The Warsaw hub is very important for both Swissair and the Qualiflyer Group,' he said. 'All of us look forward to what promises to be a very positive partnership.' LOT , which is due to announce its 1999 earnings in April, reported an increase in passengers in 1999 from 2.5m to 2.6m. The company posted a net profit of 1.9m zlotys on sales of 2.141 billion zlotys in 1998 ($520m)

Article ID: 1662