Turkish Airlines pulls out of LOT purchase

ISTANBUL - Hürriyet Daily News

Turkish Airlines announces that it is no longer interesting in acquiring Poland’s national LOT airline, saying that the purchase would not contribute to its targets.

Turkish Airlines has abandoned plans to buy LOT Polish Airlines after deciding that the acquisition would contribute little to its targets, local media reported on June 2.

Turkey’s flagship carrier had said in January that it was in negotiations to acquire LOT as the Polish airline has a geographically strategic position.

But now, the airline said that buying LOT would make a “limited contribution” to the company’s medium and long term targets, Turkish media reported.

“Therefore, the executive board of the Turkish Airlines has decided to end talks regarding the privatization process of LOT Airlines,” said the carrier in a statement quoted by local media.

LOT is a member of Star Alliance, a global airline network of 27 companies, including Turkish Airlines. The Polish government owns 68 percent of the carrier but LOT posted a loss of $17 million in 2010, leading the government to consider privatizing the airline.

Meanwhile, Turkish Airlines has also announced to the Istanbul Stock Exchange that it will commence flight to the Maldives capital of Male in 2012.