PLL LOT will incur a record high loss and the auditor is not willing to sign the annual balance sheet, as he is uncertain whether the airline will survive another year. The firm was more than zł.700 million in the red in 2008, of which over zł.300 million was due to unwise transactions securing the price of fuels.

LOT is now not paying most of its invoices as it has no funds, while banks refuse to provide further loans.

"I cannot understand how a company could operate for five years and not post any profit. And this was the case even though it paid much lower rates for planes rented from LOT than market rates," said the new acting president of LOT Sebastian Mikosz, when talking about recently liquidated Centralwings.

He also admitted that the firm will reduce staff numbers to stay afloat. Potential solutions are either the entrance of a private investor, or acquisition by competitor.

Source: Rzeczpospolita