bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 03.12.2016 | Name days: Raita, Jogita, Evija
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

Following an investment of 3.3 million, K-rauta becomes K Senukai

On Friday, 2 December, Baltics’ largest construction, repair and household goods store network Kesko Senukai opened its first new concept shopping centre K Senukai in Riga, Lucavsalas Street. This venture cost the company EUR 3.3 million.

Saeima deputies allocated record-large amount of money for «friend projects»

The money of Latvia’s budget for next year allocated not with the intention to solve problems in priority industries but rather to satisfy desires of certain politicians and their lobby groups has reached an astonishing new peak – EUR 27.9 million, according to estimates, as reported by Ir.

Income from foreign travellers in Latvia declines

In Q3 2016, Latvia’s current account had a surplus of EUR 93.4 million or 1.5% of GDP, notes Bank of Latvia economist Linda Vecgaile.

airBaltic to sell Boeing 737 after replacing them with Bombardier CS300

Latvian national airBaltic airline intends to gradually update its fleet with Bombardier CS300 aircraft. The airline plans to sell its owned Boeing 737, says Martin Gauss, Chief Executive Officer of airBaltic.

Numbers of active voters in Latvia continue to decline before next year’s elections

47% of Latvian vote-ready citizens plan to take part in next year’s municipal elections, according to results of a survey carried out by SKDS following a request from the Central Election Commission in November.

BATL: transit industry’s potential is enormous, but not used to its fullest

Baltic Association – Transport and Logistics is satisfied that real and constructive work has commenced in cooperation with LDz Logistics and Transport and Communications Institute on Latvia’s transport and logistics, including the development of a strategy for the transit industry.

Ominous milestone: one-millionth Lithuanian to leave soon

The statisticians claim that, every day, 120 Lithuanians hop onto Scandinavia and Western Europe-bound planes in search of a better life. This month, Lithuania is likely to reach an ominous and heart-wrenching milestone with the country‘s émigré number expected to go over one million. To calm down the naysayers, the estimate is unofficial.

Snowy weekends expected in Latvia

The first days of December will go by under influence from a cyclone. Because of that, many regions of the country are expected to experience snowfall. Rain is only expected along the coast. Ice is expected to form as a result and visibility will likely reduce because of snowfall.

Three European cities plan to ban diesel cars

Looking for ways to improve their quality of air, the mayors of Madrid, Paris and Athens have on December 1 expressed readiness to introduce bans on cars and trucks with diesel engines by 2025.

French President Hollande refuses to run for re-election

France’s President François Hollande has unexpectedly announced that he would not run for re-election to the post.

Several hundred Estonian reserve soldiers summoned to unexpected drills

The cabinet of ministers of Estonia ordered on December 1 to hold snap military drills to test the ability of reserve troops to reach combat readiness in 24 hours.

Freight turnover and freight traffic declines at ports

Compared to Q3 2015, the volume of freights carried by land and pipeline transport has decreased by 1.8 million tonnes or 5.5 % in Q3 2016. The most notable drop in the volume of freights carried was recorded in rail transport – of 2.3 million tonnes or 18.9 %.

EU 2017 budget to provide the most support to youth and growth initiatives

In the next year’s budget, members of the European Parliament have secured larger support to unemployed youngsters and Erasmus+, as well as initiatives for support of small and medium-sized businesses, transport infrastructure projects and research. Commitment appropriations for 2017 total EUR 157.8578 billion, and payment appropriations EUR 134.49 billion.

Vejonis picks Kalnins as candidate for NAF commander

President of Latvia Raimonds Vejonis has decided to propose National Armed Forces Joint Staff Chief Leonids Kalnins for the post of commander of Latvia’s National Armed Forces. Kalnins was previously proposed by Defence Minister Raimonds Bergmanis, according to information from LETA.

Europol releases its Christmas calendar of EU’s most wanted criminals

European Union’s police body Europol has engaged in the often commercial pre-festive period by releasing Christmas advent calendar that will reveal one of bloc’s most wanted criminals every day up until Christmas.

Expert: Latvia’s real estate market is sick

In medical terms, Latvia’s real estate market is currently sick. It will only recover once all transactions are carried out using actual market price and those whose expectations are overestimated – drop out, said real estate specialist, member of Latvian Real Estate Association and board member of Real State Jurmala Igors Danilevics.

Prime Minister: Latvia’s economic growth is not as fast as it was expected in 2015

«Looking at national economy’s growth dynamics in 2016, we have noticed drastically different ratings. On the one hand, there are positive statistics that prove Latvia’s economic growth continues. It is not as fast as it was expected in 2015. It is expected that growth will continue in the future. A few days ago opinions of multiple banking experts appeared in the public space, saying that wage growth in Latvia will speed up next year. I would associate that with the government’s decisions and the Saeima’s approved budget for 2017,» – said Prime Minister Maris Kucinskis.

Estonia’s coalition distances itself from charges against ruling party

The coalition partners of Estonia’s Centre Party, which is headed by the Estonian Prime Minister, have this week distanced themselves from charges brought against the ruling party for allegedly receiving illegal political donations.

Finland’s Prime Minister blamed for attempts to limit press freedom

The Prime Minister of Finland Juha Sipilä has denied allegations that he has attempted to affect, how press covers allegations against him and his relatives.

Restrictions for alimony avoiders and other decisions viewed by the Saeima

On Thursday, 1 December, the Saeima will decide on the new Subsistence Guarantee Fund Law. This law states that driving rights can be revoked for alimony avoiders.

OPEC oil exporters agree to reduce oil output to increase price

The Organization of the Petroleum Exporting Countries agreed on November 30 for the first time since 2008 to reduce oil supply in an attempt to make global oil prices grow. The organisatrion’s head Mohammed Bin Saleh Al-Sada stated that a cut of 1.2 million barrels a day would start from January

Tragic dormitory fire in Turkey

Police in southern Turkey has detained six people after 11 pupils and a teacher died in a dorm fire.

Tick encephalitis infection cases increased by one-third in Latvia this year

Cold November forced ticks to enter hibernation. There is reason to believe tick activity in Latvia has ended for this year, admits entomologist Voldemars Spungis.

PHOTO: world’s first Bombardier CS300 aircraft arrives in Riga

On Wednesday, 30 November, Latvian airBaltic airline welcomed the world’s first Bombardier CS300 aircraft in Riga.

Retail trade turnover in Latvia up 0.2%

Compared to October 2015, total retail trade turnover rose by 0.2 % in October 2016. Turnover of retail trade in food products decreased by 2.7 %, whereas the turnover of retail trade in non-food products increased by 2.0 %.

Newest comments