Baltic States – CIS, EU – Baltic States, Investments, Latvia, Legislation, Transport

He said that if the airline's board and council make such a decision, it will be assessed and conclusions will be drawn. Ozolins underscored though that the Transport Ministry as a shareholder may not interfere with the airline's commercial operations.

airBaltic CEO Martin Gauss said that the company will inform on further decisions in relation to purchase of planes, but the current media reports are just speculations.

As reported, after three hours of debates on Thursday, the government decided to move forward with the previously accepted airBaltic investment plan by German businessman Ralf Dieter Montag-Girmes after Saeima gives its approval and amendments to the agreement are made to meet the state's interests, Prime Minister Laimdota Straujuma (Unity) told the press on Thursday.

The prime minister said that approximately 20 controversial points were taken out of the agreement, and that the investor has agreed to this. Contrary to the original draft, the investor will have no excessive privileges, the prime minister said. Under the shareholder agreement the investor will be required to ensure compliance with the sanctions imposed by all international organizations.

"The decision made on November 3 [to attract the financial investor to airBaltic] is a short-term solution, and the government's goal is to find a strategic investor in the nearest time," said Straujuma. Attraction of the investor is the only way to ensure operations of airBaltic.

The Transport Ministry has been ordered to hire an international auditor to review the performance of airBaltic since 2011, and attract a strategic investor with the help of an international consultant.

On November 3 the government approved an investor for the national airline airBaltic that had been suggested by the Prudentia consulting company – the German businessman Ralf Dieter Montag-Girmes. He will invest EUR 52 million into the airline, and in turn get a 20% stake in airBaltic, whereas the state will have to invest EUR 80 million in the airline. Increasing the share capital of airBaltic is necessary so it could pursue its business plan and modernize its fleet.

Straujuma dismissed Transport Minister Anrijs Matiss (Unity) next day, reproaching him for the failure to timely inform the government about the steps taken to ensure the development of the national carrier and poor supervision of airBaltic strategy.

On November 16, the government supported the Transport Ministry's proposal to loan EUR 80 million to airBaltic. The Finance Ministry and Straujuma claimed that the loan will not leave a negative impact on the budget if private investment is made in the airline at the same time.

Last year, airBaltic operated with EUR 254.18 million in turnover and EUR 10.67 million in profit.