Published: 3/27/1998

On 15 January, Polish Airlines LOT and British Airways signed a memorandum of understanding. By the end of April both operators will be ready to sign several detailed agreements to establish a wide range of joint marketing and commercial activities. They include code sharing on non-competitive connections from Warsaw and London. For LOT's passengers collaboration will mean the opening of a wide range of worldwide connections served by BA from London. BA's General Manager. Bob Ayling, did not exclude the UK carrier's participation in LOT's privatisation. LOT's President Mr Litwinski said that LOT had been having very intensive negotiations with a number of European carriers but final selection was made in favour of BA. Since the privatisation of LOT was initiated in 1991, it has been quite clear that a strategic alliance with one of the European operators would be necessary. The current plans do not undermine LOT's code sharing agreement with American Airlines, and might even lead to faster development due to the fact that the US operator is also awaiting for approval of its agreement with BA. Collaboration with AA continues and LOT is about to increase the number of US destinations served under a code-sharing agreement with American Airlines. Since February it has covered six destinations with at least three more to be added by the end of March. The BA agreement was immediately followed by another signed with BA's subsidiary Deutsche BA. This might create Berlin-Tempelhof as a major hub for Deutsche passengers travelling to Eastern Europe via Warsaw.(MM) (AL398.7)

Article ID: 125