Warsaw - Polish airline LOT could boost its ties with German carrier Lufthansa after ending the year up to 200 million zlotys (70 million dollars) in the red, Puls Biznesu reported on Thursday.

"The sector is plunging into a recession. Small carriers are feeling it the most. Acquisitions are slowly marginalizing the role of alliances," the head of PLL LOT, Dariusz Nowak, told the daily.

Nowak said Lufthansa is now the most active, and cited its interest in privatizing SAS Scandinavian Airlines.

"We don't have much choice," Nowak said. "Either we decide on a change in alliances, which would involve high costs, or without biases we talk with Lufthansa."

Nowak said LOT had opted for talks with Lufthansa, but ultimately "the owners will shortly make a decision on the future of the company." (dpa)