Baltic States – CIS, Banks, Financial Services, Latvia, Legislation, Transport

Information that airBaltic planes could be arrested in Russia is "just speculation," added Liepins.

The "TV3" broadcast "Neka personiga" informed recently that airBaltic had received AKB Investbank's notice informing that the airline had to return the bank a loan of EUR 17 million, writes LETA.

Liepins stressed that the case concerned documents signed by the airline's previous head, Bertolt Flick – that is, transactions in the name of airBaltic until October 4 last year, when Flick was the only person at airBaltic who could sign documents in the airline's name.

"The matter deals with actions that Mr. Flick had likely taken before October 4, which were not reflected in airBaltic accounting system and were otherwise concealed from the airline's new management and shareholders."

"Neka personiga" informed that the loans from AKB Investbank were received last January, June and July by Baltijas Aviacijas sistemas, which then belonged to Flick and an offshore company of Vladimir Antonov; the loans were underwritten by airBaltic. Investbank has turned to Moscow Court of Arbitration, and there is concern that airBaltic planes could be arrested in Russia's airports, the broadcast reported.

The loans were taken during the period when Flick, fearing that he might be arrested in Latvia, was staying in Germany, running the airline by phone.

airBaltic is currently working on a lawsuit, hoping to have Flick pay damages he has caused the airlines, including the EUR 17 million loan issued by AKB Investbank and other shady deals.

The total amount that airBaltic will demand from Flick is LVL 24 million. The lawsuit could be handed in to a court next week.

airBaltic operated with a loss of LVL 77 million in 2011.

airBaltic was established in 1995. At the moment, the main shareholder in the airline is the state of Latvia with 99.8% of shares.