Centralwings an albatross around LOT's neck?

Despite an outstandingly favorable market situation, both companies are suffering from financial difficulties and from a lack of direction for the future. The current plan for Centralwings sees the carrier hitting the black in 2008, however, until then it is still a weight around LOT's neck. "Today one has forgotten that Centralwings is still in the growth phase of the investment and one expects achieving profitability impossible at this stage," reads the memorandum. "Its development will require additional outlays and working capital for 2007-2008, which would put additional burden on the parent company." The document also explicitly states that "zl.5 million in equity for a company with a turnover of zl.500 million is surprising and arousing suspicion". The Treasury Ministry, which owns a 67.9% stake in LOT, also believes that the management of the company should clearly define Centralwings' role. (Puls Biznesu, p.6) M.M.