January 04, 2018 09:00 AM
UPDATED 3 MINUTES AGO
Poland has created a new aviation company based on the national airline, LOT, that aims to capitalize on a planned major airport and on the region's growing air travel market.
The state-owned Polish Aviation Group has initial capital of 1.2 billion zlotys ($350 million) and brings together LOT and providers of technical and passenger services. The move is intended to help the company compete globally.
Government officials say that the company will be acquiring and leasing out more aircraft in order to help further develop air travel in Central and Eastern Europe.
A major airport is due to be built near the capital, Warsaw, primarily serving the soaring traffic with China.
The decision strengthens LOT, which in recent years went through a painful cost-cutting reorganization to avert bankruptcy. The rescue plan was accepted by the European Commission in 2014.
The head of LOT, Rafal Milczarski, is the chairman of the new group's board of directors.
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