“A sour taste remains”: Poland reacts to LOT losing out to Pegasus over Smartwings acquisition
February 22, 2026
Czechia’s Smartwings was sold to Türkiye’s Pegasus Airlines in December 2025. However, just 12 hours prior to the announcement, LOT Polish Airlines was making preparations to announce its successful bid for the carrier – unaware of Smartwings’ change of heart.
While LOT has not commented on the matter, local media have reported extensively on the complexities of the situation. Most recently, Poland’s Secretary of State for the Ministry of Infrastructure Dr. Maciej Lasek spoke to Money.pl about what went wrong – and what feelings remain.
He shared with the publication that there was a “hidden meaning” to the situation and highlighted that a “sour taste remains” after Smartwings’ last minute pull-out.
What happened in the LOT-Pegasus fight for Smartwings?
LOT Polish Airlines had apparently agreed a deal with the Czech owners of Smartwings two weeks prior to the announcement. However, a day prior to the press reveal – with the stage already set up at LOT’s headquarters – Smartwings signed a deal with Pegasus. Until then, it had seemed almost certain that LOT would win the bid.
Lasek said: “We made every effort to ensure this process was completed successfully. Both LOT Polish Airlines and the Ministry of Infrastructure’s corporate governance worked at full speed to ensure all deadlines and conditions agreed upon with the Czech partner were met. LOT’s negotiators had already struck a deal with the Czechs two weeks earlier.”
“And if you strike a deal, it means both parties are committed to the transaction, right? Unfortunately, 12 hours before the final documents were signed, the other party—to put it mildly—changed their mind,” he continued. “A rare occurrence, even in business, where ethical behavior also has its limits. A sour taste remains.”
Concerns over EU rules
For Pegasus, the deal is an important foothold into the European market. “The strategic investment aims to strengthen the company’s presence in Europe and support global expansion,” the company had said in December.
The company announced in December that it would spend 154 million euros ($180 million) purchasing Smartwings and its subsidiaries including former Czech flag carrier, Czech Airlines. In order for the deal to go through, the carrier set up a subsidiary in Amsterdam with a starting capital of one euro. It is leveraging the dual citizenship of its shareholders, it says, to achieve the required majority EU ownership for the Smartwings acquisition.
Lasek said that the entry of a non-EU airline into the market distorts competition. “Let’s at least do this little bit to make this competition fairer,” he said, referring to the new Dutch subsidiary. He also referenced the ongoing debate of strict EU regulations that he believes make the bloc’s airlines uncompetitive against competitors in the Middle East – including the likes of Turkish Airlines.
Smartwings’ strategic value
Smartwings is a strategic acquisition for any airline. For LOT, it would have signified its continued growth in Eastern and Central Europe, bringing additional Boeing 737 capacity and a foothold in the Prague market. It also would have strengthened its position vis-à-vis its much larger competitors in the surrounding region, including nearby Lufthansa in Germany.
Europe’s aviation industry is becoming more and more consolidated. Currently, TAP Air Portugal is also on the market for acquisition with the continent’s larger aviation groups all interested in a stake. As reported by this publication yesterday, Air France-KLM sees TAP as playing a “central role” in its group, while British Airways owner IAG wants a majority stake. Lufthansa, also busy with its ITA Airways acquisition, also remains involved in the process.
LOT is in a strong position, though losing out on Smartwings is a development that might impact its long-term competitive position. However, it continues to expand its fleet at a rapid pace with new Boeing 737 MAX aircraft on the way and a recent order for Airbus A220 planes reinforcing its regional position.
Featured image: LOT Polish Airlines
