bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 16.08.2017 | Name days: Astrīda, Astra
LatviaLatvia

Minister: the German investor has invested approximately EUR 52 million in airBaltic

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«A new page has been opened in the development of airBaltic. In accordance with the contract between the Latvian government and Ralf-Dieter Montag-Girmes, the German investor has invested approximately EUR 52 million in the airline,» – says Latvian Transport Minister Uldis Augulis.

With that, along with fleet modernization and Horizon 2021 business plan, approximately EUR 132 million will be invested into airBaltic. The airline’s shareholders will decide on the increase of the company’s capital on Tuesday, 29 March, as confirmed by Transport Ministry.

«I am confident that decision made thus far in regards to continued function of airBaltic in the past five years, including the more recent investments, have been right so far. As a result, the company will contribute to the country’s overall economic growth, creation of new jobs and provision of internationally recognized services to residents. It should be noted that the aviation industry provides 3% of the country’s GDP. Half of that is thanks to airBaltic,» – notes the minister.

«The first steps have been taken to allow airBaltic to procure new aircraft. Those will become available in autumn. Decisions made so far will also help reduce long-term costs and create new and innovative approaches to passenger service. All the future steps are clear as well – the company has to continue its work in the realization of its development plan and attraction of a strategic investor,» – said Augulis.

«Our residents can be proud of the fact that Latvia has its own national airline, the likes of which cannot be found in either Estonia or Lithuania. It demonstrates our ability to exist in this complicated market niche and maintain the main transport hub in Baltic States, which is a unique and noteworthy accomplishment, emphasizes the minister. Latvia’s airBaltic airline has received awards of excellence as the most punctual airline in the world and the most innovative services,» – adds the minister.

According to him, considering the country’s geographical location in the European Union, Latvia’s aviation industry has a strategic transport infrastructure element to it. Latvia does not currently have alternative forms of transport connectivity with other European countries that would be able to compete with air traffic in terms of efficiency. With that, the state continues to invest into the aviation industry, including airBaltic, because it is one of the most important industries in the country.

As it is known, the Latvian government has decided to approve German businessman Frank Dieter Montag Girmes as airBaltic’s investor. He has agreed to invest EUR 52 million in the airline as long as the Latvian state invests EUR 80 million. The airline’s combined capital of EUR 132 million would contribute to modernization of the fleet and development of the business plan.

According to information from Firmas.lv, Ventbunkers’ turnover was EUR 54 million in 2015. The company’s revenue for that year was EUR 16.9 million.

BNN had previously reported that Ventbunkers has expressed readiness to invest in the country’s national airBaltic airline. Ventbunkers has asked Air Baltic Corporation’s CEO Martin Gauss and Transport Ministry to discuss this investment option.

«Ventbukers, as one of the largest companies in Latvia with stable financial footing, is interested in discussing investment opportunities with airBaltic. Ventbunkers’ economic indexes for the past year demonstrate successful results. We are now prepared to go further. I believe it is important to support local companies to give them the opportunity to grow, develop and create new jobs in Latvia. With that and in spite of the already launched investor attraction process, we as prepared to provide the airline with all the necessary support and discuss investment opportunities for airBaltic’s development,» – comments Eva Cinina, Chairperson of the Board of Ventbunkers.

As it is known, the Latvian government has decided to exclude the procurement of Russian Sukhoi aircraft from airBaltic’s business plan. The government has also approved the decision to appoint Montag Girmes as the airline’s investor.

Saeima has also agreed to allocate a loan of EUR 80 million to airBaltic.

At the same time the Saeima has decided to prohibit airBaltic and its subsidiaries from procuring, leasing or using products made by military industrial complexes facing international sanctions.

As it is also known, one of the largest companies in Latvia – Ventbunkers – had recently expressed  its surprise about Transport Minister Uldis Augulis’ statements to the media regarding the fact that Ventbunkers is not considered as a viable potential investor for airBaltic.

Ventbunkers notes that the company’s freedom to have a look at the airline’s financial state had previously been delayed due to unexplained reasons. This made it more difficult for the company to develop a detailed investment offer. In spite of the fact that an information non-disclosure agreement was signed between Air Baltic Corporation and Ventbunkers in January 2016, the company has yet to receive access to the airline’s legal documents for and in-depth assessment, as reported by Ventbunkers.

«The Transport Minister’s statements in regards to turning down Ventbunkers as a potential investor for airBaltic came as an unfortunate surprise for us in spite of our investment offer and that we have been taking part in cooperation talks with airBaltic and Transport Ministry representatives for several months. This does explain why there have been delays in relation to providing all the necessary information to Ventbunkers,» – comments Ventbunkers Chairperson Eva Ciniņa.

«I believe such an attitude is unprofessional in a situation when the airline is in dire need of investments, especially considering that the attracted German investor is so hard to get in touch with. We do not understand the minister’s public announcement, which came without prior consideration of all options. This is especially shocking considering that there are still some matters that require addressing in the airline, and that the money promised by the German investor has yet to be received. With that, one would ask who will take responsibility when Latvia’s national airline does not receive the necessary funding in time and be put in a critical situation because of that,» – Ciniņa adds.

One of the largest companies in Latvia – Ventbunkers – has expressed readiness to invest in the country’s national airBaltic airline. Ventbunkers has asked Air Baltic Corporation’s CEO Martin Gauss and Transport Ministry to discuss this investment option.

Ref: 102.109.109.7766


Leave a reply

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Estonia seeks to improve reputation of state as employer

As the Estonian Ministry of Finance wishes to boost the reputation and brand of the Baltic country's public sector, it has announced a procurement tender aimed at preparing an action plan for reaching these goals.

Warning: there may be short-term problems with Swedbank internet banking functionality

Because of Swedbank’s planned IT modernization work scheduled for the night to Thursday, 17 August, there may be short term problems with payment card and internet banking functionality, the bank warns.

Aseradens: neither Usakovs nor Lembergs should be allowed to become prime minister

If he became chairman of Unity, Economy Minister Arvils Aseradens would mobilize democratic forces to prevent the possibility of either Aivars Lembergs or Nils Usakovs becoming prime ministers, Aseradens said in an interview to 900 seconds programme of LNT.

Caksa believes increasing wages for doctors would improve politicians’ credibility

The planned wage increase in healthcare could be the first step towards improving politicians’ credibility, says Healthcare Minister Anda Caksa.

Bill Gates donates USD 4.6 billion, reduces shares in Microsoft

The co-founder of the U.S. computer software firm Microsoft, Bill Gates, has allocated to charity 4.6 billion U.S. dollars (3.9 billion euros), which is the philanthropist's highest donation since the year 2000.

LOSP proposes using electronic packing slip system to reduce fraud

An electronic packing slip system for goods would be invaluable for agricultural goods, because it would help push out and reduce VAT fraud, says Latvian Agricultural Organisation Cooperation Council.

Latvia and Russia agree on exchange of additional 3,000 universal permits for cargoes

Latvia and Russia will exchange 7,000 universal permits for international cargo transports in 2017. This will be the largest universal permit volume in the past 15 years, as reported by Road Directorate.

Sierra Leone hit by tragic mudslide

A tragic mudslide has taken place in Sierra Leone, where flooding in the capital Freetown caused a mudslide, in which nearly 400 people have been have died.

Talks with potential KVV Liepājas metalurgs buyers to conclude in August

Talks with potential buyers of the insolvent KVV Liepājas metalurgs will conclude at the end of August, says representative of the company’s insolvency administrator Dzintars Hmielevskis.

Estonian e-Residency programme in deal with Paymentwall

International payments facilitator Paymentwall in collaboration with the Estonian programme of e-Residency program started this week Passport, a new service, with which businesspeople around the world will have the opportunity to found an EU company and access payment and other supporting services via internet.

Prosecutor: in parallel to Oligarch case, KNAB also worked on other cases

In parallel to the investigation of the so-called oligarch case, Corruption Prevention and Combating Bureau also continued working on other cases, said chief prosecutor Modris Adlers.

62.2% of Latvia’s population was employed in Q2 2017

Since Q2 2016, the employment rate in Latvia has increased by 0.8 percentage points. In Q2 2017, Latvian employment rate (62.6 %) was the highest recorded since Q2 2008 (63.1 %).

LIZDA: many uncertainties about education process appear just prior to the school year

Two weeks prior to the beginning of the new school year there are many uncertainties about the education process and teachers’ wages, said Latvian Education and Science Workers' Union chairperson Inga Vanaga in an interview to 900 seconds programme of LNT.

Several candidates to compete for the post of chairman of Unity

Economy Minister Arvils Aseradens, deputy chairman of Unity Edvards Smiltens and Riga City Council deputy Vilnis Kirsis intend to compete with one another for the post of head of Unity, as confirmed by the party’s representative Elina Bivina.

City of Tallinn urged to quit paying PBK TV 500,000 euros

Tallinn city government should allocate the 500 000 currently spent per year in buying television programmes in the Russian-language TV channel PBK to the Estonian state Russian-language TV channel, ETV+.

Latvia’s wealthiest mayors – Lembergs, Sesks and Pozarnovs

Latvia’s wealthiest mayors in 2016 were Ventspils Mayor Aivars Lembergs, who remains suspended from his post due to multiple criminal processes against him, Liepaja’s Mayor Uldis Sesks and the new head of Baldone County Council Andrejs Pozarnovs, according to information from LETA.

DNB says it has no plans to change ATM system for its clients

Commission for money withdrawal from DNB Bank’s ATMs has been introduced by Swedbank and only for its own clients, DNB Bank’s representatives say.

Rinkevics proposes continuing cooperation with Switzerland

Switzerland’s Extraordinary and Plenipotentiary Ambassador to Latvia Konstantin Obolensky says he is prepared to work to develop relations between the two countries, as well as maintain close ties with Latvian institutions and its people.

BATL: Augulis’ goal is reaching an agreement on increase of cargoes for Latvia

Baltic Association – Transport and Logistics has sent an invitation to Latvia’s Transport Minister Uldis Augulis and Russian Federation’s Transport Minister Maksim Sokolov to find a solution for the catastrophic situation with cargo flow from Russia.

Newest comments