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.

The Polish aviation group was created during Melczarski’s time, which was about to take over the German airline Condor and was supposed to challenge such giants as Lufthansa. The plans included strengthening the aviation market in Central and Eastern Europe, as well as leasing aircraft to other carriers.

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”

There are voices that under the new government the national carrier should be brought down to earth.

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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