Airport, Financial Services, Latvia, Transport
International Internet Magazine. Baltic States news & analytics
Friday, 26.04.2024, 09:47
IPO among the options for airBaltic’s future ownership
Print version |
|---|
In 2015, German businessman Ralf Dieter Montag-Girmes acquired
20% of the airline following a four-year privatization process. That stake was
then sold
on to Danish entrepreneur Lars Thuesen in 2017.
However, the Latvian government has continued to look to further
privatize some of its remaining 79.99% shareholding, with a strategic
investment from another airline as the ideal scenario.
“The election is in 80 days and I do not expect any
announcements before a new government is formed, but that [privatization]
process is going on,” airBaltic CEO Martin
Gauss told ATW on the sidelines of the Farnborough Air Show.
Gauss said an IPO is one potential outcome. “There is also
an option for the airline to go public. We would likely see that in spring or
summer next year if something is happening. There is no urgency because we have
placed the
[A220] order with the financing abilities we have today. It’s an option,
but it is not something that is decided.”
An IPO could be well timed, because airBaltic is set to deliver its strongest ever performance in 2018,
further-improving on 2017’s record figures.
“We have had a very successful start to 2018, beating our
best year in 2017 in terms of passenger numbers and financial results. We are
ahead of our revenue and profit targets for the year. The numbers are looking
good, despite the fact that fuel prices are going up. Each time we use an Airbus
A220 instead of an older aircraft, we are making a cash saving on fuel. We
don’t see a drop-in demand on the passenger side,” Gauss said.
Riga-based airBaltic is looking to become the reference
carrier for the Baltic region under its Horizon 2021 strategy. Under Gauss’
leadership, the airline has returned to profitability and is rapidly expanding
its operations in Tallinn, Estonia and Vilnius, Lithuania.
Gauss said airBaltic will
operate any route that makes sense within the A220’s range. “There are no
limits. We would do any route in any country,” he said.
«The Baltic Course» Is Sold and Stays in Business!
