Andrew Doyle/MUNICH
Plans by Poland and Bulgaria to sell off major stakes in their state-owned flag carriers are gathering pace. A strategic partner is being sought for LOT Polish Airlines, while Balkan Bulgarian Airlines is set to get a new majority shareholder.
The Polish Government is preparing to sell 38% of LOT to an airline partner by the end of this year to integrate the carrier into a major global alliance. Leading potential investors are oneworld founder British Airways, which already has an extensive alliance with LOT, and Star Alliance member Lufthansa.
Though the German flag carrier has traditionally shied away from taking equity stakes in its alliance partners, it confirms a "general interest" in co-operating with LOT. But it declines to comment on whether it would consider an equity stake.
The privatisation will also see LOT's employees taking 10% of the airline. The Government plans to dispose of its remaining 52% stake through a public offering. The bulk of the 38% stake being offered to a strategic airline partner will comprise newly-issued shares, allowing the Polish carrier to be recapitalised.
Poland's state treasury is due to issue "invitations to negotiate" to several major airlines imminently, says LOT. The airline made a small profit in 1998 and says it expects to remain in the black this year.
Meanwhile, Bulgaria's privatisation agency is drawing up a shortlist from five bids received for a 75% stake in Balkan Bulgarian. The sell-off is proceeding, it says, despite the disappointment of no bids from European airlines.
The five bidders are Israel's Zeevi Group, which includes Arkia Airlines, German investor Ulrich Behdeler Atakan, a Russian consortium including Tupolev and several regional airlines, Luxembourg-registered Data Control Holdings and Air Rent, also based in Luxembourg.
The lack of interest from European carriers may stem from the fact that the Bulgarian Government last year blocked at the last minute a bid by a management-led consortium, backed by Lufthansa, to take control of the airline.
Romania is also looking at privatising flag carrier Tarom and is recruiting consultants to advise it on the sell-off, which could take place early next year.
Source: Flight International
