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Ceturtdiena 02.04.2020 | Name days: Imgarde, Irmgarde

Three airBaltic scenarios

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUToday, September 22, following an extraordinary meeting of the Cabinet of Ministers, the Latvian government is still in a wait-and-see position regarding its national airline airBaltic.

Three airBaltic scenarios

The government discussed three possible airBaltic courses of development. The first scenario provides boosting airBaltic capital proportionally, the second – selling the company, while the third – setting up an entirely new airline.

According to Martins Panke, press secretary of Prime Minister Valdis Dombrovskis, for the first scenario to come true the private shareholder Baltic Aviation Systems (BAS) needs to comply with all the government’s requirements immediately. In particular, BAS will need to confirm that all the true beneficiaries have funds enough to inject in the airline. Latvia was ready for this  scenario already on September 23, however, back then, BAS failed to meet the government’s requirements despite having agreed to them.

While if the state opts for selling its airBaltic shares, the government will need to see to it that BAS agrees to the most favourable terms of the transaction. The airline will in no way be sold at the price the private shareholder currently offers.

In order to discuss possibilities of setting up a new airline, the government has decided to attract international experts in the field of aviation to assist on legal, financial and technical implications of such a step.

Financial consultant Prudentia and Transport Ministry are set to keep negotiating airBaltic capital boost proportionally with BAS. They will also assess how much public funds it will take to restructure the airline or create a new one.

BAS true beneficiaries were also made known today. A letter sent to Prime Minister Valdis Dombrovskis says that these are Bertolt Flick, airBaltic President and CEO, as well as a private person from Russia.

Unprotected airBaltic

Riga Regional Court did not approve airBaltic‘s application to be granted legal protection. Court employees justified the step, saying that not all the necessary documents were provided. The airline is given a month’s time to settle the matter and present all the required papers.

Let’s remember that airBaltic demanded legal protection. Such a status would mean that the state as a shareholder would no longer be able to block airBaltic board’s decisions. Neither could the management be changed.

Leave a reply

  1. mojo says:

    Are they serious? Do those people know how much it takes to set up a new airline?

  2. Polly says:

    Just a couple of lats :D

  3. LH says:

    Nothing special…just an airline

  4. BT says:

    Wasting time again… Gamblers!!! Forgot scenario 4: Bankruptcy! Simple one. Everybody looses everything. Latvia falling back into oldtimes with lots of potential lost for a better future. They do not understand they deal with a sensitive european, volatile market. Loosing customers, most of them are not Latvians means others will fill the gap. It will not be a latvian company thats for sure!!!

  5. Kristabelle says:

    If not for your writing this topic could be very convoluted and olbqiue.

  6. Chianna says:

    I have exactly what info I want. Check, please. Wait, it’s free? Awoesme!

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