June 2, 2023


Complete Canadian News World

Who will be the new CEO of LOT Corporation? Challenges and problems of the airline

– The new president faces a difficult challenge. He will have to face billion dollars in public aidthe disappearance of liquidity, the lack of a strategy as far as the concept of further development … – enumerates in an interview with money. Marcin Sielowski, former Acting President of LOT Polish Airlines in 2015-2016. It was he who handed over the reins to Milczarski almost seven years ago. This is why he argues that he knows the problems within the company today.

Spontaneous enlargement and a dynamic, but visible, increase in results has become an advertising goal to show your breasts for medals. At home, manual management of farms prevailed, resulting in a historic strike or plant reforms of the company “by eye”. In the end, LOT and its staff struggled again – says Celejewski.

The rest of the article is under the video

See also: Melczzarski: There is no substitute for CPK. Statement from 2019

Tough times for LOT. Another restructuring?

He carried out the recovery program of his predecessors to a large extent Commenting on Milczarski’s dismissal, said Adrian Furgalski, Team Leader of TOR Economic Advisers. In the list of the ex-president’s achievements, he also mentioned the campaign organized by LOT to cancel visas to the United States, which succeeded in 2019.

It was a true test of management, strategy and the idea of ​​finding a place for LOT on the map of Europe COVID-19 crisis. And the war in Ukraine that broke out immediately after.

In my opinion, the company needs a deep cost restructuring to be competitive. LOT made money mainly from long-distance flights, and routes to Asia provided hope for development. The war in Ukraine and The ban on flights over Siberia makes these directions unprofitable – Maciej Lasik, Civic Coalition member from the Parliamentary Infrastructure Committee, tells us.

He notes that another challenge facing LOT is the government’s plans for the construction of a central port of call – it’s not just about a new terminal, runways and railways. Because the new airport built between Warsaw and Łódź, which will be launched in 2028, will not be successful without a powerful carrier. CTH will become a new hub for LOT Polish Airlines. Foreign airlines that appear there will fly to their hubs.

– According to IATA forecasts, its fleet was to be increased from 75 to 148 aircraft by 2028. This is a huge financial and logistical challenge and the need to provide crews for these aircraft, – adds the deputy. Relations with the crew is another area where the new chief will have to prove himself. Trade unions point to the need for a “new opening” and regulate, among other things, issues of employment under B2B contracts.

Two decisions are needed “for now”

The new CEO must be a realist and not build LOT “power” on the basis of CPK. Maybe in 20 years, but today the carrier is in trouble – money says.

In his opinion, the new boss of the Polish company LOT must quickly make two decisions. – To officially close the black hole, called the hub in Budapest, because there are only casualties and the withdrawal from Radom – says Szymczak.

The margin of error is very small.

However, our interlocutors agree that anyone who assumes the presidency of Polish Airlines will be thrown into deep waters. This is a few months before the parliamentary elections.

This time is not a toy aircraft in a quietly and dynamically growing market. You will have to quickly make strategic decisions in a post-pandemic environment, the ongoing war in Ukraine, cutting off key Far Eastern markets and… competition that has done its homework. The margin of error is very small.

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