Airport, Financial Services, Latvia, Transport

International Internet Magazine. Baltic States news & analytics Thursday, 25.04.2024, 14:55

Aggressive takeover of airBaltic would cost between LVL 100-200 mln

Alla Petrova, BC, Riga, 16.09.2011.Print version
Aggressive takeover of the national airline airBaltic would cost the state LVL 100-200 million, International Airport Riga Chairman Arnis Luhse said during an interview on Latvian Radio this morning.

Luhse believes that it would be the most acceptable solution in the current situation.


The decision on the airline's future must be made as soon as possible, and the second solution – the airline's sale to a private investor from China, Russia or any other country is also positive, emphasized Luhse.

 

The current situation must not continue – the airline's state deteriorates with each passing day, explained the airport's chairman.

 

Those Lithuanians, who were stuck at the airport due to airBaltic flight cancellations earlier this week, mentioned that Latvians will soon be forced to fly from Vilnius, said Luhse.

 

As reported, on September 14, airBaltic President Bertolt Flick criticized Latvian politicians for their "hysterically exaggerated reaction" and announced that the airline will decrease the number of its flights by 726 in November and 723 in December.

 

In order to save the national airline airBaltic from its dead end, the airline's President Bertolt Flick must be replaced, Economy Minister Artis Kampars (Unity) told Nozare.lv.

 

It is obvious that Flick currently delays solving airBaltic issues, pointed out the minister.


Kampars believes that, in order to solve the airline's issues, its minority shareholder, Baltijas Aviacijas sistemas (BAS), should take over the control of the airline as soon as possible, and the airline's president should be replaced by a professional, who would be able to cooperate with the airline's majority shareholder, the state, and agree on investments in airBaltic and the airline's sustainable operations strategy.

 

"The latest developments at the airline – the cancelled flights and hundreds of laid off employees indicate that Flick is wasting the airline's most valuable assets – passengers' trust and professional employees," said Kampars.

 

airBaltic was established in 1995. The state owns 52.6% of the airline's shares, and BAS – 47.2%.






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