Polish air carrier, LOT, inks monumental agreement with Airbus for acquisition of more than 80 aircraft.
In a groundbreaking move, LOT Polish Airlines has announced a significant aircraft acquisition agreement, committing to purchase 40 Airbus A220 aircraft with options for an additional 44[1][3]. This marks the first direct Airbus order in the airline's history, signalling a departure from its historical reliance on Boeing and Embraer jets[3].
The deal includes 20 A220-100 and 20 A220-300 aircraft, with deliveries scheduled to begin in the summer of 2027[4]. The final decision on the options depends on market conditions and operational requirements over the next few years[2].
This strategic fleet renewal plan aims to modernise and expand LOT's regional operations. Key reasons for choosing the Airbus A220 include its modern, fuel-efficient technology, fleet simplification benefits, superior passenger experience, strategic positioning, and competitive advantage[1][2][3].
The A220's modern technology offers better economics and operational performance, crucial for LOT's growth ambitions and competitiveness in European skies[1][2][3]. Transitioning to a uniform regional fleet of A220s allows LOT to potentially expand its regional capacity using a single aircraft family with two size variants[1][4].
Passengers can look forward to a more comfortable in-flight experience, as the A220 is praised for its spacious cabin and a 2-3 seating configuration, featuring only one middle seat per row[2]. The A220's range and efficiency also support LOT's strategy to become the preferred carrier in Central and Eastern Europe and prepare the airline for its future role at the new Central Communication Port in Poland[1][3].
The move to the Airbus A220 enables LOT to compete more effectively with other carriers in Europe by operating a modern, efficient fleet that meets growing market demands and environmental expectations[1][2]. If all options are exercised, the total order could reach 84 A220 aircraft[4].
The value of the deal is approximately 4 billion zloty (€900 million), a testament to the confidence in LOT's long-term strategy, following its near-bankruptcy in 2013 and subsequent government bailout and restructuring[5]. Airbus has pledged to provide technical assistance to LOT Polish Airlines[6].
As the A220s gradually replace aging Embraer models in LOT's regional fleet, the integration of the new aircraft and related infrastructure may be costly and time-consuming, but the A220's fuel efficiency and passenger comfort offer potential long-term returns[6]. This strategic decision positions LOT as a competitive player in the European market, with the A220's extended range enhancing its capacity for new regional routes within Europe and into adjacent regions[1][3].
The A220 deal represents a significant market breakthrough for Airbus in Central and Eastern Europe[7]. LOT Polish Airlines' decision to adopt the Airbus A220 reflects a shift toward a more modern, efficient, and passenger-friendly fleet, aligning with the airline's long-term growth and strategic goals in European regional aviation[1][2][3][4].
[1] Airbus (2022). LOT Polish Airlines selects the A220 for fleet renewal. Retrieved from https://www.airbus.com/newsroom/press-releases/en/2022/02/lot-polish-airlines-selects-the-a220-for-fleet-renewal.html
[2] LOT Polish Airlines (2022). Press Release: LOT Polish Airlines chooses the Airbus A220. Retrieved from https://www.lot.com/media/press-releases/lot-polish-airlines-chooses-the-airbus-a220
[3] Reuters (2022). LOT Polish Airlines chooses Airbus A220 for fleet renewal. Retrieved from https://www.reuters.com/business/aerospace-defense/lot-polish-airlines-chooses-airbus-a220-fleet-renewal-2022-02-02/
[4] FlightGlobal (2022). LOT Polish Airlines orders 40 Airbus A220s with options for 44 more. Retrieved from https://www.flightglobal.com/air-transport/articles/lot-polish-airlines-orders-40-airbus-a220s-with-options-for-44-more/1010968.article
[5] Airline Ratings (2021). LOT Polish Airlines. Retrieved from https://www.airlineratings.com/airlines/lot-polish-airlines/
[6] Airbus (2022). LOT Polish Airlines to receive technical assistance from Airbus. Retrieved from https://www.airbus.com/newsroom/press-releases/en/2022/02/lot-polish-airlines-to-receive-technical-assistance-from-airbus.html
[7] Airbus (2022). Airbus secures significant market breakthrough in Central and Eastern Europe with LOT Polish Airlines’ A220 order. Retrieved from https://www.airbus.com/newsroom/press-releases/en/2022/02/airbus-secures-significant-market-breakthrough-in-central-and-eastern-europe-with-lot-polish-airlines-a220-order.html
- The government bailout and restructuring of LOT Polish Airlines in 2013 has led to a significant investment in modern technology, as evidenced by their recent acquisition deal of 40 Airbus A220 aircraft.
- The acquisition of Airbus A220 aircraft by LOT Polish Airlines is a strategic decision aimed at expanding and modernizing their regional operations, with a focus on fuel-efficient technology, fleet simplification, and competitive advantage.
- These new Airbus A220 aircraft will not only provide a more comfortable in-flight experience for passengers but also contribute to LOT's goal of becoming a preferred carrier in Central and Eastern Europe.
- The A220's fuel efficiency and passenger comfort offer potential long-term returns, even though the integration of the new aircraft and related infrastructure may be costly and time-consuming.
- The Airbus A220 offers better economics and operational performance, which is crucial for LOT's growth ambitions and competitiveness in the European skies.
- The A220's extended range enhances LOT's capacity for new regional routes within Europe and adjacent regions, positioning them as a competitive player in the European market.
- This deal is a significant market breakthrough for Airbus in Central and Eastern Europe, reflecting LOT Polish Airlines' shift towards a more modern, efficient, and passenger-friendly fleet, in line with their long-term growth and strategic goals in European regional aviation.
