PPL can save approx. PLN 100 million yearly following restructuring

“‘Polish Airports’ State Enterprise can save even as much as 100 million zlotys a year thanks to the restructuring process,” said PPL director, Michał Kaczmarzyk, in an interview for the Polish Press Agency. According to Mr Kaczmarzyk, PPL is expected to end this year with a loss, but should be in the black again in 2015.

“As of next year we will be able to save approx. 90-100 million zlotys annually. The savings will come from employment restructuring, renegotiation of some of third party contracts, reorganization and simplification of processes,” said director Kaczmarzyk. The company’s annual revenues are approx. PLN 700 million.

“Due to restructuring costs we will still be in the red this year. But as of 2015 we expect to operate at a profit, a quite significant profit, actually. Both in terms of sales and net result,” asserted Mr Kaczmarzyk.

The director of PPL explained that restructuring costs are mainly related to severance packages for employees who decided to leave the company. The pay and benefits were imposed by the old corporate collective labour agreement. The total cost of implementation of the voluntary redundancy programme will exceed PLN 250 million.

Last Friday the representatives of employee organizations and PPL management signed a new collective agreement, which will come into force on 1 October 2014.

In Mr Kaczmarzyk’s opinion, the document will help run the company in a smooth and efficient way, in line with modern standards. “It introduces normal terms of employment and wages in the company. It also allows for a more flexible organization of work,” he argued. „PPL will remain an attractive employer in terms of salaries,” he added.

Mr Kaczmarzyk pointed out that as recently as at the start of this year PPL hired 2200 people, whereas the current number is 1400. “Around 100 persons are scheduled to leave the company by the end of the year. According to our estimations we will need to hire approximately 50 new people. Our level of employment should settle in the range of 1300-1400, which means 800 full-time jobs less compared with January,” explained PPL director.

PPL is getting ready to implement three major studies: the business plan, master plan and strategy. The business plan covers two years – from mid-2014 to mid-2016. The other two studied are more long-term. The strategy sets a direction for PPL for the next 10 years and the master plan for the next 25 years.

“The Master plan is a strictly technical document, but a crucial one from our point of view – it shows up to which point the airport can safely develop, eg. defines the maximum potential number of operations,” said Mr Kaczmarzyk.

“PPL has always been putting all its strength and energy into Chopin Airport, considered the company’s main asset. But let’s not forget we also hold a nearly 80% share in Kraków Airport. We want to change our current relation and begin taking advantage of the synergy between the two airports,” explained Mr Kaczmarzyk in the interview. He mentioned investment and purchase plans as a potential area of cooperation. “If Chopin Airport teamed up with Balice, it would significantly improve both airports’ competitive position,” argued Mr Kaczmarzyk.

PPL’s role will also change with regard to Zielona Góra Babimost airport. So far it was operated directly by PPL. As of the beginning of next year this function will be taken over by the province marshal.

Kaczmarzyk is not planning to get rid of the shares in Modlin Airport – PPL’s stake is 30.39%. Although he is convinced that both airports “are sooner or later bound to consolidate in terms of management.”

„I would like to improve our cooperation with regional airports, in particular Poznań, Szczecin and Rzeszów. We have stakes in these airports and a majority on boards,” he explained.

The managing authority of Chopin Airport, ‘Polish Airports’ State Enterprise is the biggest airport operator in Poland. It holds shares in 10 companies managing airports: in Kraków, Szczecin, Poznań, Gdańsk, Modlin, Wrocław, Katowice, Szczytno, Bydgoszcz and Rzeszów.

Chopin Airport-at-Dusk

Source / Author: Chopin Airport

Photo: Chopin Airport