LOT to spin off maintenance services

The management board of the national airline, LOT, claims that one of the firm's major objectives is to spin off its technical base. "In our strategy for 2008-2012 we anticipate the creation of a transparent group structure. Spinning off the base is the execution of the plan," said LOT president Piotr Siennicki. "LOT Aircraft Maintenance Services will provide technical services, while the parent company will focus on aviation operations." According to the daily Parkiet, LOT's supervisory board will issue a permit for spinning off the maintenance company on Monday and have it approved by company owners later. The State Treasury is the largest of these, with a 67.97% stake in the carrier. The spin-off should become operational by the beginning of 2008 by which time it must obtain all required licenses and certificates allowing technical maintenance of planes. The new entity should eventually provide services to other carriers as well, but in the first year of operations it will handle mostly LOT. Its earnings are still expected to exceed zł.10 million. (Parkiet, pp. 1, 7) M.M.