Aviation Week notes that Eithad is in advanced talks with the Polish government over an equity investment in LOT Polish Airlines.
The discussions that are under way could help unload a part of LOT from the Polish government, reducing the burden of cost.
There are multiple scenarios of how much of LOT could be unloaded – but to comply with EU Rules, it must not be a majority stake in the company.
Etihad currently has (or is obtaining stakes) in the following airlines
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Aer Lingus
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Air Berlin
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Air Seychelles
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Jet Airways India (in the process of obtaining)
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Virgin Australia Holdings
Etihad’s “Equity Partner” plan has traces of Swissair’s “Hunter” strategy, by buying stakes in smaller partners to increase the reach of the airline as a group.
However, the recent choices of Air Serbia and the possible investing in LOT has more questions than answers in how it intends to leverage those stakes. Air Serbia is to be re-fleeted, whilst LOT has a mixed bag from Embarer 190’s, right up to the new Boeing 787 in its fleet.
The networks these airlines have got to show a lot more joined up thinking and action than there is currently. Whilst Etihad likes the cost reductions due to joint/group purchasing on the ground – it can’t be enough to justify the investments.
There has to be some real joined up thinking – and joined up action – between Etihad and its “equity partner” airlines… or this could be a very costly exercise….