Airport, Latvia, Lithuania, Transport

International Internet Magazine. Baltic States news & analytics Monday, 13.07.2020, 00:57

New airline in Lithuania will have a different business model; Latvian premier is against

Alla Petrova, BC, Riga, 21.09.2010.Print version
Bertolt Flick, the owner of the company Baltijas Aviacijas Sistemas which is a co-owner of Latvian national airline airBaltic, denies that the new airline he intends to start up in Lithuania will be a rival to airBaltic, because the two companies ''will have separate business models, and will offer their services in two different markets,'' the business information portal was told by Baltijas Aviacijas Sistemas representative Juris Petersons.

''The planned airline in Lithuania and airBaltic will be airlines that will be operating in the same region, but will have different business models. Both airlines will offer their services in two different markets,'' the company explains.

 

As reported, Baltijas aviacijas sistemas, a company that belongs to Flick, plans to enter the Lithuanian market and commence flying from Vilnius next April, Lithuanian Transport Minister Eligijus Masiulis and Baltijas Aviacijas Sistemas co-owners Flick and Kristian Kirchheiner announced at a press conference yesterday.

 

Baltijas Aviacijas Sistemas has established a new airline, which will have its headquarters in Vilnius. The brand of the new airline will be announced in January. It is planned that the company's initial investment will total LTL 3.5 million (LVL 714,000), which will later increase to LTL 69 million.

 

On the other hand, Prime Minister Valdis Dombrovskis (New Era) told members of the press today that Flick will have to make a decision on his future business plans.

 

The Latvian prime minister emphasized that Flick will not be able to be in charge of airBaltic, where the state of Latvia holds controlling interest, whilst at the same time also being in charge of a competing airline.

 

"These activities will have to be separated," the prime minister said.

 

Flick himself will have to make the decision whether he wishes to run airBaltic or an alternative airline, Dombrovskis added.






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