Turkish Airlines drops plans to buy Polish LOT

AFP, Saturday 2 Jun 2012

Turkish Airlines (THY) has abandoned plans to buy LOT Polish Airlines after assessing that the acquisition would contribute little to its targets, local media reported Saturday.

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 privatisation 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 THY.

The Polish government owns 68 percent of the carrier but LOT posted a loss of $17 million in 2010, leading the government to consider privatising the airline.

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