Cheap Polish airline close to bankruptcy
27.02.2008 10:52
Rising oil prices, aggressive competition and not enough airplanes means the future of the low-cost airline Centralwings, owned by the Polish Airlines PLL LOT, is bleak.
LOT will have to decide very soon if its low-fare carrier will share the fate of Air Polonia, liquidated three years ago, or if it will specialise in chartering its aircraft to other carriers, reports The Wall Street Journal Polska.
In 2007, Centralwings made a loss of 73 million zlotys compared with 65 million in the previous year.
Director of Centralwings Waldemar Krolikowski has admitted that his airline is not in a good position to compete against a growing number of foreign cheap carriers. He is expected to present the situation of the company and scenarios to improve the situation of the company at the next Supervisory Board meeting.
Besides increasing competition and more aggressive fare pricing, Krolikowski has complained of a lack of a sufficient number of aircraft, high fuel prices and growing costs of airport fees.
“We have not sufficiently been able to protect the company against such price changes”, Krolikowski told "The Wall Street Journal Polska”.
(Polskie Radio)
27.02.2008 10:52
Rising oil prices, aggressive competition and not enough airplanes means the future of the low-cost airline Centralwings, owned by the Polish Airlines PLL LOT, is bleak.
LOT will have to decide very soon if its low-fare carrier will share the fate of Air Polonia, liquidated three years ago, or if it will specialise in chartering its aircraft to other carriers, reports The Wall Street Journal Polska.
In 2007, Centralwings made a loss of 73 million zlotys compared with 65 million in the previous year.
Director of Centralwings Waldemar Krolikowski has admitted that his airline is not in a good position to compete against a growing number of foreign cheap carriers. He is expected to present the situation of the company and scenarios to improve the situation of the company at the next Supervisory Board meeting.
Besides increasing competition and more aggressive fare pricing, Krolikowski has complained of a lack of a sufficient number of aircraft, high fuel prices and growing costs of airport fees.
“We have not sufficiently been able to protect the company against such price changes”, Krolikowski told "The Wall Street Journal Polska”.
(Polskie Radio)