bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 20.01.2020 | Name days: Aļģirds, Orests, Oļģerts, Alģis
LatviaLatvia

Three airBaltic scenarios

FaceBook
Twitter
Draugiem
print
(+1 rating, 3 votes)

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!

Week in Lithuania: police on hunt of a child’s kidnapper, 2020 conscription list announced, Belarus seeks Lithuania’s help

In Lithuania, the top news stories last week were the police hunt of a child’s kidnapper, the announcement of the 2020 conscription list and Belarus seeking Lithuania’s help court.

BNN summary of the week: Lay-offs at LDz. KNAB wrapped around ZZS’ finger. Ķuzis steps down

The last week demonstrated that not everything that glitters is gold. Although previously Latvian Railway proudly reported growing freights and revenue, the statement released in the middle of the week suggests the company is not in the best state – the company plans to lay off 1 500 workers by the end of the year.

FKTK lists exceptions in which banks are allowed to service Aivars Lembergs

Latvian Finance and Capital Market Commission has listed cases in which Latvia’s finance market participants will be allowed to service Aivars Lembergs, who is subjected to US OFAC sanctions and accused of serious crimes, and three organizations associated with him – Ventspils Development Agency, Business Development Association and Latvian Transit Business Association.

Appropriate jobs promised for laid-off LDz workers

Latvian State Employment Agency promises to find appropriate jobs for laid-off Latvian Railway workers. If need be, those people will be provided the opportunity for re-qualification, raise their qualification or train for a new profession, as confirmed by the agency’s representative Signe Bierande.

Bordāns selects potential candidates to lead the Supreme Court and Prosecutor General’s office

I can see people who could take the reins over the Office of the Prosecutor General and the Supreme Court and change their work standards, Latvian Justice Minister Jānis Bordāns told TV3 programme 900 seconds when asked about any potential candidates to lead those institutions.

Ukrainian Prime Minister ready quit after leaked voice recording

Ukrainian head of government Oleksiy Honcharuk has offered to resign following the circulation of an audio recording, where criticism of Ukrainian President Volodymyr Zelenskiy and his knowledge in economy is voiced.

Inflation in Latvia reportedly higher than Europe’s and Eurozone’s in December

In December 2019 inflation in Latvia was higher than the average in the European Union and Eurozone, according to information published by Eurostat on Friday, 17 January.

Estonian population growth continues in 2019 due to immigration

Estonia has registered in 2019 population growth for the fifth consecutive year and it can be explained with immigration not with natural growth, according to preliminary data released by Statistics Estonia.

BNN investigation | Raunas street property: quiet assistant with a «secret wallet» for Lembergs

There are suspicions that Aivars Lembergs, subjected to international sanctions, has sold real estate located on Raunas Street 27 in Riga to his sister «on paper only». This may have been done to avoid confiscation of properties in the event of a guilty verdict or a possible arrest over the real estate property. However, it is possible Lembergs maintains full control over this real estate property and, most likely, the property is used to fatten his wallet on a regular basis.

Audit: majority of Latvian housing stock has degraded to a state of a slum

Since the denationalization effective access to housing security in Latvia does not exist and most of the housing stock has degraded up to a state of a slum, as concluded by the Latvian State Audit.

Prime minister affirms possibility of carrying oil supplies for Belarus through Latvia

During his meeting with Belarusian President Aleksandr Lukashenko on Thursday, 16 January, Latvian Prime Minister Krišjānis Kariņš affirmed that oil supplies for Belarus may be possible using Latvia’s ports.

Rain in Australia provides relief to continuing fight against bushfires

In eastern Australia, which has been suffering in prolonged and disastrous bushfires, heavy rain has been falling for the past 24 hours.

Weather to remain warm in Latvia at week’s end

At the end of the week the sky in Latvia will become clear and the sun will shine. No precipitation is expected. However, a low atmospheric pressure area will approach the country from the west during weekends, as reported by Latvian Environment, Geology and Meteorology Centre.

GKR helps overthrow Riga’s vice-mayors and put an end to ruling coalition

Riga City Council vice-chairperson Anna Vladova and deputy Druvis Kleins lost their respective posts at an extraordinary meeting on Thursday, 16 January. This happened because multiple deputies from Honour to Serve Riga voted together with the opposition in favour of dismissing them.

Latvian Railway plans to lay off 1 500 employees

Latvian Railway plans to terminate labour relations with approximately 1 500 employees before the end of 2020, as reported by the company’s representative Ella Pētermane.

Russian State Duma approves Putin’s new Prime Minister

The Russian State Duma has approved on Thursday, January 16, the candidacy of the country’s next Prime Minister appointed by Russian President Vladimir Putin.

Ventspils opposition invites Pūce to act to prevent US sanctions from spreading to city council

Environment Protection and Regional Development Ministry and especially Juris Pūce have to act to resolve the current state of Ventsils City Council. It should be dismissed, as the municipal government does not have moral, ethical or legal foundation to continue managing and implementing the criminal management’s policy, according to Ventspils City Council opposition deputies.

Trade unions urge Latvian government to resolve transit businesses’ blocked bank accounts problem

Multiple trade unions associated with the transit industry have turned to Latvia’s highest ranking officials with a request to resolve the situation with bank accounts of multiple transit companies having been blocked because of US sanctions against Aivars Lembergs. If the government does not act, trade unions promise to organize massive protests.

Anris Leimanis picked as RB Rail council chairman

Anris Leimanis, independent council member from Latvian shareholder, has been picked as Rail Baltica joint Baltic company AS RB Rail council chairman. Ahti Kuningas and Karolis Sankovskis will serve as vice-chairmen, as confirmed by the company.

CSP: number of residents at risk of poverty declines in Latvia

In 2018 a total of 434 thousand persons or 22.9 % of the population of Latvia were at risk of poverty – 0.4 percentage points less than in 2017.

Latvian Saeima to ask Denmark to not extradite Kristīne Misāne to South African Republic

On Thursday, 16 January, Latvian Saeima made the decision to protect the rights of Latvian citizen Kristīnes Misāne, asking the Danish parliament and Danish law enforcers to support their Latvian colleagues and find a solution to avoid extraditing her to the South African Republic, as reported by Saeima’s press-service.

Smiltēns: Riga City Council’s situation can be described – divide, redistribute and plunder

«The situation in at Riga City Council can be described with three words – divide, redistribute, plunder,» said leader of Latvian Association of Regions Edvards Smiltēns in an interview to LTV programme Rīta panorama on Thursday, 16 January.

One single vote left the Lithuanian election system intact

The understanding that Lithuania’s election system needs changes is nearly overwhelming, but the ruling Farmers and Greens’ attempt to lower the Parliament election threshold in parties’ multi-member constituency from current 5 per cent to 3 per cent suffered a setback this week.

Estonian power grid executive detained over bribery suspicion

The Estonian Internal Security Service has detained a board member of the Elektrilevi power grid operator over suspicion of taking a bribe.

Demographer: Latvia has the lowest birth rate level observed the past decade

Birth rates continued to decline in Latvia in 2019. The lowest level of the past decade was reached in the country last year, says demographer Ilmārs Mežs.


Do NOT follow this link or you will be banned from the site!