Polish LOT To Join Star Alliance - Reports

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Apr 5, 2002 The Polish national airline LOT will join the Star Alliance led
by Germany's Lufthansa, newspaper reports said yesterday."The treasury
ministry has decided to have LOT apply to join the StarAlliance," the daily
Rzczpospolita reported, citing unnamed sources.The daily Trybuna, close to
ruling Democratic Left Alliance party, said the choice had been made in
mid-March by Treasury Minister Wieslaw Kaczmarek.LOT has been seeking a new
aviation alliance since the collapse ofQualiflyer, following the bankruptcy
last year of LOT's strategic investor Swissair.Three airlines have expressed
interest in LOT, including Lufthansa,Scandinavian Airline System (SAS), which
is also a member of the StarAlliance, and British Airways, which is a member
of the Oneworld alliance.Swissair bought a 37.6 per cent stake in LOT for
USD$184 million in 1999, but its interest shrank to 25.1 per cent due to
later share issues.The Polish government now owns 67.96 per cent of LOT, with
employees holding a 6.94 per cent stake.For 2001, LOT posted an unaudited net
loss of 639.1 million zlotys, compared to a profit of 28.2 million zlotys in
2000.





Leo/ORD

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