EU – Baltic States, Financial Services, Investments, Latvia, Transport

"Both stockholders – not only the state – invested LVL 30 million in the company in total last year. But the company paid LVL 31 million to SAS for an old debt. Therefore, this stockholder jointly-invested sum was not even enough to pay previous debts to SAS," Flick says in the interview.

As "Diena" reported back then, airBaltic has neither publicly explained the poor results of 2008, nor how it plans to work with the pledged profits of 2009. Also, in the limits of million many sums conform – that, for which Flick bought airBaltic stocks from SAS, how much he had to invest in the stock capital, and that of state investment, writes LETA.

Then it was publicly pointed out that the biggest airBaltic creditor is the former co-owner SAS, that in 2008 sold its stocks to Flick for LVL 14 million, when the government refused preemption rights. The debt to SAS in the report is showed as LVL 29.2 million (LVL 33 million were mentioned in the takeover).

"How the debt came to be, is a good question," a source, familiar with the situation, tells "Diena". He made an assumption that the unfavorable fuel agreements that Flick states as the reason for losses were succeeded by him from SAS. They did not pay for fuel, so the debt incurred. SAS declined to comment to "Diena" on the advent of the debt as well as negotiations with Flick about their repayment schedule, therefore this version cannot be verified.

According to LETAs archive, in summer of 2009 the government decided on the investment in the airBaltic capital, implying the losses of 2008 as the reason, but later, after the government's decision, Kaspars Gerhards, then the minister of transport, explained that it was decided to increase the stock capital to divert the inverted funds to the company's development projects, for example, acquisition of new airplanes by leasing and to cover credit facilities.

The decision, to increase the stock capital, was made based on Flick prognosis that airBaltic profits in 2009 could reach LVL 12 million, which would be invested in the capital. Flick also was supposed to hand in the company's plan of action to the government.

The company's profits in 2009 were LVL 14 million, but the airline's brand and its related trademarks were sold to Baltic Aviation Systems Ltd., whose owner is Flick. According to the 2009 audit report, they were evaluated as worth EUR 13 million (LVL 9.136 million). The sold trademarks were airBaltic, "airBaltic.com", "airBaltic Travel.com", "airBaltic Hotels", "Baltic Miles", and "Baltic Taxi". Later they were bonded.