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Tuesday 30.05.2017 | Name days: Lolita, Vitolds
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Saeima fails to make any concrete decisions in regards to airBaltic

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAfter nearly two-hour-long debates, Saeima National Economy Committee failed to make any concrete decisions in regards to airBaltic, as confirmed by Prime Minister Laimdota Straujuma.

She explains that the biggest discussion surrounded the modernization of airBaltic’s fleet. The stockholders’ agreement is also a major discussion that requires in-depth discussions in the government.

After the meeting of the committee, deputy Romans Naudins explained that deputies had to enquire about the situation in airBaltic from the Prime Minister and Martin Gauss.

Naudins explained that it became clear that taxes airBaltic pays to the state budget directly and indirectly are larger than the assistance provided to the airline. ‘My personal opinion is that the airline has enormous potential in the region. It can develop safely as long as we make all the right steps,’ – explained the deputy.

Harmony deputy Ivars Zarins said there are those interested in the attraction of a private investor for airBaltic. However, it is not the only possible solution – there is the option of attracting funds from the state. Zarins explained that after receiving all the information at the meeting, he understood that the solution has been unjustifiably narrowed down to either black or white.

There are multiple grey solutions available. For example, the state could provide a loan instead of an investment in the airline’s base capital. When deputies asked for an assessment, nothing was provided. The management of airBaltic said a private investor is necessary. Even Finance Ministry emphasized the importance of this solution, explaining that the state cannot provide any assistance, because that would breach requirements of the European Commission. It is clear, Zarins says, that there is room to maneuver. airBaltic managed to pay for new aircraft with its own revenue. Now seasonal revenue is in decline and money is needed. The state could provide as much as the airline needs in a short-term perspective.

Zarins adds that it seems like airBaltic has announced a procurement of aircraft in which airplanes of its attracted investor are likely to win. In addition, Zarins has a feeling that even if the investor is declined, his aircraft will be bought.

Ref: 102.109.109.9872


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  1. ikke48 says:

    who wants to put money in an airline which is virtually bankrupt?

    Thumb up 0 Thumb down 0

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