SAirGroup boss says LOT still safe from cash-flow woes
By : Magdalena Wierzchowska
SAirGroup's (http://www.sairgroup.com) announcement last week that it had recorded its worst financial results in 70 years will not affect LOT Polish Airlines (http://www.lot.com), said Mario Corti, head of SAirGroup.
Switzerland's SAirGroup, which owns a 37% strategic stake in the Polish carrier, saw a net loss of CHF 2.88 million ($1.69 million) last year, down from a profit of CHF 273 million ($160 million) in 1999. "The year 2000 was the worst year in Swissair's 70-year history," Corti said.
Nevertheless, he said the news would not alter the company's strategy for LOT.
"There are no plans at this stage to change anything," Corti said. "I'll first get a clear picture before we make any moves or changes in the strategy we have."
He also said LOT and South African Airways were the only two companies out of the 10 airlines in Swissair's Qualiflyer Group to record a profit.
After the results were announced, SAirGroup's share price slid to $82 on Tuesday from $104 the previous Friday.
SAirGroup's strategy to invest in small, often unprofitable airlines across Europe was one of the main reasons for the dramatic drop in the company's profit last year, analysts said. Corti said the firm's restructuring plan would include focusing on a limited number of airlines and airline-related businesses.
The company has already stopped funding French Air Littoral and this summer will decide on the fate of Belgian airline Sabena, which recorded a loss of E325 million last year. The group also plans to change the company's name back to Swissair Group. "We're signaling that the whole thing has turned in a new direction," Corti said.
