Airport, Employment, Latvia, Legislation, Transport

The federation explains that the airline is laying off its employees like other businesses in similar situations – trying to pay out as little compensation as possible. ''It is not going smoothly,'' federation representatives said. The lay-offs will affect pilots, cabin crew and other professional employees at the airline.

The support of the federation will be dependent on reaction of airBaltic employees, because usually the persons being laid off take the more passive route. However, if the airline's employees begin actively expressing their view, the federation will intervene to support them.

Overall, airBaltic employys over 1,000 persons, including 400 cabin crew.

Air Baltic Corporation was established in 1995. The airline's majority shareholder is the state of Latvia with 52.6% of shares. On the other hand, airBaltic President Bertolt Flick owns 50% in''Baltijas Aviacijas Sistemas, which controls 47.2% of shares in the airline.

At the moment, the situation between the company's two shareholders is strained.

The state has received an non-audited overview of 2010, in which airBaltic presents losses of LVL 34.2 million.

The government of Latvia decided to take part in bailing out airBaltic on August 23. Prudentia has to evaluate how the state could participate in the further development of the company. Prudentia will evaluate two scenarios – the state participates as an equal as the company's second shareholder, or the state completely participates in all of the airline's operations. According to the government, selling the state's shares in airBaltic has not been recommended at this time.