Poland’s government has passed a regulation that paves the way for the privatization of LOT Polish Airlines.
“The government has adopted regulation that will allow the sale of all the shares held by the treasury in the company LOT for a strategic investor,” Polish Prime Minister Donald Tusk said.
Poland owns 93% of LOT, but the rule change will allow private investment in the state-owned carrier. Tusk said the new statutes wouldstrengthen the state’s negotiations with potential buyers, removing a regulatory hurdle to the deal.
In January, LOT confirmed plans to cut staff numbers 30% and reduce its fleet from 40 to 25 aircraft, after receiving a $127 million emergency government bailout in late 2012. The airline recently re-appointed Sebastian Mikosz as CEO.
Turkish Airlines had previously been tipped as a potential buyer for the Polish carrier.