LOT threatens to ground flights by midnight tonight

Flagship carrier LOT Polish Airlines has threatened to ground all its flights unless the Treasury Ministry will guarantee its insurance in the event of war or terrorist attack. Up until now LOT has been covered for up to $2 billion with Polish insurer Warta, and reassured in London. Following the terrorist attacks in the United States, however, reassurance companies have issued statements refusing to purchase war and terrorist attack policies worth more than $50 million. This has forced Warta to reduce its insurance cover. According to LOT, $50 million is far too little and any further operations with such a low insurance limit will lead to high losses and may eventually result in bankruptcy. LOT is threatening to ground all its flights if by 23:59 pm Monday night the Treasury has not made any decision on underwriting its insurance cover. LOT spokesman Leszek Chorzewski is urging the Treasury to make a decision even earlier. "What we really need is a decision by 11 am, as at 12 our planes depart for the United States, and we will not send them unless we are certain that they will return," he said. (Gazeta Wyborcza, pp. 2, 24; Puls Biznesu, p. 11) M.T.K.