dreamliner

LOT, Boeing Reach Deal Over Faulty Dreamliners

The cash-strapped airline said earlier this year it was seeking $32.9 million in compensation.

WARSAW - Polish flagship carrier LOT on Wednesday said it had struck a deal with Boeing (IW 500/14), months after requesting around 24 million euros in compensation for the delivery of faulty 787 Dreamliners.

The agreement "is satisfying for our company and covers all the losses we identified. Obviously I can't disclose the amount," LOT chief Sebastian Mikosz told reporters.

The cash-strapped airline said earlier this year it was seeking 100 million zloty ($32.9 million) in compensation from Boeing for losses it suffered while the troubled Dreamliners were grounded.

In November 2012, LOT became the first European company to use the Dreamliner before battery issues prompted the worldwide grounding of the planes months later.

The deal with Boeing, inked Monday, comes during trying times for LOT, which received a 100-million-euro rescue loan from the state last year.

The airline asked for a second loan in August but Mikosz said Wednesday it has put the request on hold, hoping to put it off for as long as possible.

He said LOT would end the year with a loss of 20 million zloty, less than the expected 142 million.

The state owns 67.97% of the carrier, which employed 2,063 people at the end of 2012. Poland's deputy finance minister said earlier this year the airline would axe 500 jobs.

Copyright Agence France-Presse, 2013

TAGS: Finance
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish