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Sunday 19.11.2017 | Name days: Liza, Līze, Elizabete, Betija
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Economy Minister: airBaltic under insolvency threat

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Artis Kampars

Latvian national airline AS airBaltic is currently under threat of insolvency as it reports 18 million lats in losses in the first five months of 2011, says Artis Kampars, Economy Minister.

These huge losses could have been accumulated on purpose to pump out money resources, he expresses his assumptions to Rietumu Radio.

Information I have reveals a grim picture. In fact, it is alarming. Last year, the government invested over 15 million lats in the company so that it could purchase new aircraft and develop further. Moreover, airBaltic CEO and one of the owners Bertold Flick demonstrated his business plan with significant profit planned for this year and in 2012 as well. Instead, there are huge losses, Kampars stresses.

In addition, he sees no reasonable grounds why such losses have occurred. Alright, last year it was Islandic volcano eruption, but no such eruptions to limit the airline’s operation have taken place so far, Economy Minister says, also criticising Flick’s model of management with a great part of airBaltic daily activities – financial management, services and fuel supply under the management of companies directly tied to Flick’s private business.

What is more shareholders of this private business are hiding in offshores, he says.

He also reminded the former Transport Minister Ainars Slesers once signed an exceedingly unprofitable shareholders agreement boosting the losses of the state. These persons should pay back this money or be hold responsible in some other way, Kampars points out.

If it really turns out the company is on the brink of insolvency, there is such a concept as deliberate bankruptcy which means it is a criminal action, he stresses, expressing hopes the state would not have to act the same as in the case of Parex bank and save the company.

Kampars believes the society – each tax payer – is righteous to know the financial situation in the airline airBaltic whose majority shareholder is the state itself, according to the Economy Ministry.

He also stresses the airline instead of calling for his resignation and speaking about proceedings should report to the government about the situation in the company, its aims and measures to eliminate losses.


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