Airport, Investments, Latvia, Legislation, Transport

This means that after 16 years, the State of Latvia has finally reacquired full legal control on decisions made within the airline's shareholders' meetings, board and council, Freidenfelds said.

''With this, Latvia has carried out all of its pre-conditions mentioned in the October 3 agreement. The state will now be able to make the necessary investments in the future development of airBaltic,'' Freidenfelds added.

At the moment, it is still not clear whether the airline's minority shareholder – Baltijas Aviacijas Sistemas (BAS), has transferred its investment of LVL 14 million into the airline, reports LETA.

As reported, according to the new shareholders' agreement, the state will proportionately participate in increasing airBaltic share capital – by October 14, the state is to loan airBaltic LVL 16 million on several conditions: airBaltic must retract its petition for legal protection submitted to the Riga District Court, the 59,110 SAS shares must be annulled, and a new version of airBaltic charter must be approved.

The agreement stipulates that the consolidated airBaltic shareholders agreement signed on April 30 will be terminated. A new council will be appointed for the airline, which will appoint a new three-member board. airBaltic CEO Bertolt Flick will be dismissed.

The airBaltic brand must be returned to the airline.

The agreement stipulates that the airline's minority shareholder BAS must provide LVL 14 million to airBaltic. The airline's liabilities to BAS will be consolidated, consolidated will also be the subsidiaries of airBaltic and BAS, and the outsourced services will be given back to airBaltic. A restructuring plan and a new business plan must be drawn up for the airline in two months.

The agreement says that if all the conditions are met, the share capital of airBaltic will be increased, where the state investment will total LVL 57.6 million.

The state funding will be provided as a loan from the State Treasury, with the possibility that at least some part of it could be capitalized. Part of the funding will be used for modernization of the airline's fleet.