Ambitious plans and changes in LOT in 2014

Warsaw, 23 January 2014 – LOT is changing intensively, the year of its 85th birthday is inaugurated with a great campaign under the slogan “4 × 85,000 tickets” in promotional prices. The next twelve months will be exceptional for the Company not only because of the anniversary, but mainly because of the following strategic changes for passengers that make LOT a modern and open line. 
The carrier also turns around in terms of business: financial results are getting better, the Restructuring Plan is being consistently implemented, and one of the first Company’s decisions in 2014 was to postpone application for the second tranche of public aid until the end of June 2014.

After extensive changes of the last year, in 2014 we must maintain the restructuring pace and strengthen achieved results. I do not hide my enthusiasm: the results – much better than expected – confirm that we are moving in the right direction. In 2015, at this time of the year I would be glad to inform you that we have achieved profitability, but it is an immense challenge, because of limitations associated with the restructuring. 
Nevertheless, one of the first Company’s decisions in 2014 was to postpone application for the second tranche of public aid until the end of June 2014 – says Sebastian Mikosz, CEO of LOT Polish Airlines. Both IATA and AEA forecasts for 2014 are optimistic for aviation and passenger traffic and I hope that LOT will be part of this positive trend. My ambition is to ensure that 2014 becomes a year of LOT transformation into a sustainably profitable company with a great history, but above all with a modern product and orientation for the future. I hope that in the period of these difficult changes we shall meet with favourable attitude of many people in the industry and outside it, as it was last year, for which I wish to thank you – adds Sebastian Mikosz.

LOT jubilee year begins with a strong accent – thinking about passengers and joint celebration, LOT Polish Airlines have prepared a special birthday promotion “Hot prices on cool days”, under which “4 × 85,000 tickets” will be on sale on the 85th anniversary of LOT. Passengers will have a choice of flights to 36 cities in Europe and in the Middle East within LOT network, during the most popular holiday season – from 23 June to 26 October. The offer includes inter alia: a romantic trip to Paris with a return ticket price starting at PLN 409, walk around the charming old town of Riga with a return ticket price starting at PLN 119 or shopping at London’s Oxford Street with a round-trip ticket price starting at PLN 499. Sales start on 22 January and will last till 29 January.

The birthday promotion is also an opportunity to change the communication platform. 
“Make it your way” is a new slogan that will appear in LOT campaigns. It shows that the company development is focused on satisfying passengers’ needs and expectations. 
Their opinions are a beacon in our everyday work. The second edition of LOT campaign “Zmiany.lot.com”, launched in August 2013, also refers to this. The “main characters” are LOT employees who present new LOT services, such as Taxi&Fly, Meet&Greet and Duty Free Online. The dedicated “zmiany.lot.com” platform presents materials in the form of video spots – this time as many as 13 videos.

The new LOT slogan “Make it your way” is featured among others in a new offer of the carrier – already at the beginning of February, the passengers will be able to draw travel inspirations from a special service platform launched by LOT. The service, which will be part of lot.com site, will be aimed to encourage passengers to travel to interesting places – that LOT flies to – and which are worth visiting because of many tourist attractions. The first edition will cover, of course, “Winter Inspirations”, and passengers may be inspired by four subjects: summer extension, winter and winter sports, culinary travels and sales. 
After a subject is chosen, the site will show a list of cities corresponding to the “inspiration”, and – what is most important – each direction will be accompanied with practical information and a guide with recommendations for places worth visiting. To facilitate the use of the “Inspirations” platform, a booking function will be established, profiled for the selected city and activity, allowing users to buy a ticket with a single click.

New inspirations will be added in subsequent quarters (Winter, Spring, Summer and Autumn Inspirations), and new features will appear, such as a mobile application, new categories of inspirations or an option of full packages and tours offers.

But that’s not the end of the news – starting from the beginning of February, an offer of in-flight entertainment on Dreamliners will be extended. There will appear new titles of newspapers and magazines to considerably increase the variety of the press for passengers. And the IFE (In Flight Entertainment) system will be, inter alia, enriched with new TV series and shows, twice as large selection of on-board movies and a wide range of audiobooks.

Starting from the New Year, the carrier has also extended the LOT Business Lounge „Polonez” at the Warsaw airport. A new part, the “Elite Club Lounge”, has been separated, with additional 50 seats. It is designated for passengers travelling in Elite Club on board Dreamliners and for persons with Star Alliance Gold status. Passengers will have at their disposal a recreational area with individual lighting, a separate place for relaxation with four comfortable reclining seats and a work place with four computers, with Internet and printer access. Everyday domestic and foreign press will be also available, both in paper form and on tablets, as well as free Wi-Fi. The “Elite Club Lounge” will have a different catering offer for passengers: they will be offered hot meals throughout the day and a wider range of drinks and fine spirits.

Beside the product changes, the largest 2014 challenges for LOT Polish Airlines include the need to maintain liquidity and dynamic restructuring pace as well as to strengthen operational effectiveness, inter alia by enlarging the range of non-aviation services that generate the revenue (ancillary revenue). Operations should be based on the long-term strategy of the company, which is in preparation. It will assess not only future business opportunities of LOT, but also its rate of growth, the market role and will verify process effectiveness, in particular in terms of sales, in relations with the passengers. The strategy is also designed as a starting point for future privatization and for attracting investors.

Negotiations with the European Commission on the Restructuring Plan assumptions and decisions on applying for the second tranche of public aid will be also of key importance. LOT does not plan to request the second tranche of aid in the forthcoming months. The second tranche was originally assumed to be paid in August 2013. 
However, due to much better company results, it has not been launched yet.

The rational and optimal use of the long-distance fleet, in conditions of limited “offering”, imposed by the European Commission, will also be the 2014 challenge for the carrier. In early spring, LOT fleet will be joined by the sixth Dreamliner, which is planned to be leased to other airlines or to be dedicated to charter flights on behalf of travel agencies. This solution will generate additional revenue for the Company.

LOT Polish Airlines have prepared for 2014 several additional attractions and surprises associated with the anniversary. On the occasion of LOT birthday, a layout of a flagship in-flight magazine “Kaleidoscope” has been refreshed and a new dedicated section has been added to the magazine – “LOT-flight into the past” with archival photographs and interesting facts about the company. The carrier also wants to celebrate its anniversary with passengers on board – there will be special announcements, a special birthday video will be included to the Dreamliners in-flight entertainment system in the second half of the year, special markings with the 85th anniversary logo have already appeared on board the aircraft, and will soon appear on the hull of one of the Dreamliners. Symbolically, LOT has also taken under its wing and care four cranes at the Warsaw zoo.

LOT Polish Airlines also want to celebrate the anniversary with passengers from cities around Poland and…. around the world. An exhibition of historical photographs capturing the most important moments of LOT “life” will be presented at some airports that LOT flies to and in some Polish shopping centers. The anniversary programme also includes other exhibitions, vernissages and events, inter alia at social networking sites and in urban space, involving both passengers, employees and partners.