Prime Minister Mateusz Morawiecki appointed the Polish Aviation Group. It is a joint-stock company with capital of PLN 1.2 billion; it will be composed of State Treasury companies, including PPL LOT, LOT AMS, LS Airport Services.
Prime Minister Mateusz Morawiecki has established the Polish Aviation Group. I appointed the president of the board of this entity. PGL was equipped with capital of PLN 1.2 billion, contributed by the owner, ie the State Treasury. The new function of the president of the board will be pro bono and will combine it with the existing responsibilities.
The Polish Aviation Group will ultimately gather the most important State Treasury companies operating in the passenger aviation industry. These include: Polish Airlines LOT, LOT AMS – technical aircraft servicing and LS Airport Services responsible for ground handling of passengers and cargo.
The Polish Aviation Group is a response to the growing demand for air transport in Poland in record time, as well as in Central and Eastern Europe and the need to improve the competitiveness and efficiency of the Polish passenger services sector. The appointment of the Polish Aviation Group to life will make it possible to take advantage of the gigantic market opportunities that stand before aviation. This project has great potential in business.
As part of the group “we will be able to integrate the entire value chain, achieving significant synergies resulting from the cooperation of companies, increasing business efficiency and maximizing the return on investment for the owner, ie the State Treasury”.
The detailed composition of PGL and the formula of its operation will be presented in the next few months. Entities that will enter PGL are to maintain organizational separateness and implement one common strategy meeting the needs of the aviation market in Poland and in Central and Eastern Europe. In addition, each of the companies is to maintain its identity, capital segregation and will conduct competitive activity on the market of air services. None of them requires public assistance.
The government intends to create within the structure of PGL a new entity in the previously undeveloped segment of passenger aircraft leasing. He will specialize in acquiring and leasing air carriers, performing this activity on completely market terms. In this also LOT will be able to offer operational and financial leasing services.
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All activities will be absolutely transparent from a regulatory perspective. Of course, in an appropriate manner – when it is necessary and justified, we will inform all regulatory authorities about our actions. We will also – where it is needed – inform the European Commission.
Restructuring of LOT Polish Airlines
In 2014, the EC approved state aid for PLL LOT and accepted the company’s restructuring plan. Public aid can be obtained once every 10 years.
The establishment of PGL is part of a consolidation trend that can be seen throughout the European market. It seems that the European Commission supports these activities in principle. He noted that most of the air groups in Europe and the world operate in a similar way, such as Lufthansa, Air France KLM or IAG.
The Prime Minister will decide who will directly supervise PGL and the entities that will be its members. The Group’s operational strategy is already substantially ready.
PLL LOT reminded in the communiquΓ© that until 2012, the aviation sector companies operated in Poland within one group then concentrated around the LOT brand. Over time, each of these entities was separated and sold. At the same time in Western Europe there was exactly the opposite trend.
The project of the Polish Aviation Group is one of the elements of the Responsible Development strategy.
