Kogeneracja attributes 2002 losses to power excise

Kogeneracja has posted a zł. 13.4 million loss for 2002 saying it suffered from the excise duty of zł. 20 per megawatt, but pledged to return to profits in 2003. The company also announced it had created reserves of zł. 12.8 million to pay its laid-off workers under a special program it launched this year, which also contributed to the shrinking of the company's operational profit. The heat and energy producer also recorded lower than expected sales mainly due to relatively high temperatures in November and December 2002. The company recently signed an agreement with members of the EdF Polska group, owner of almost 50% of Kogeneracja, for joint coal purchases and is hoping to reduce the real price of the fuel. (Parkiet, p. 4) J.K. British Airways and LOT cut prices in bid to compete Britain's biggest air carrier, British Airways, has decided to compete on the European market with cheaper flights, including lower prices and an easier ticket-booking system on the Polish market. Polish airlines LOT, faced with the new BA offer, responded with even cheaper prices. The price of BA tickets to London for instance, depending on the type of tariff, has fallen by 17%-48%. The cheapest flight to London without the possibility of changing dates in the so-called "restrict" tariff stands at $149 plus airport taxes of $37, with the LOT price $2 lower. The most expensive BA flight will be remain the "flex" tariff, which enables changing the date of both legs of the journey, nonetheless it is still 17% cheaper than the previous price. The price of a LOT ticket is $2 lower. (Rzeczpospolita, p. B5) A.C.