airBaltic

The future of the Latvian national airline airBaltic has once again come under the government's spotlight. According to Prime Minister Andris Kulbergs, the company will likely not be able to continue its operations without additional financial infusions. The head of government stated that the Cabinet of Ministers does not intend to make further decisions until it receives and evaluates the airline's new business plan. The document should demonstrate whether airBaltic can achieve a financially sustainable operating model. Kulbergs noted that the previous development strategy of the company raises questions for him. In particular, he described the plans to increase the fleet to 100 aircraft and serve 10 million passengers a year as overly ambitious. In his opinion, it is still unclear whether these goals were sufficiently economically justified. The Prime Minister also criticized the existing management system for state enterprises. According to him, the state does not always provide sufficiently professional oversight of their activities. At the same time, Kulbergs emphasized that he considers airBaltic a strategically important company for Latvia. However, in his opinion, this status alone does not mean that the state should endlessly finance the carrier. In fact, further decisions now depend on the new business plan. It is on this basis that the government will assess whether the company can operate in the long term without constant financial support from the state. Minister of Transport Richard Kozlovskis has been tasked with presenting this document by the end of July. After its review, the Cabinet of Ministers will determine the next steps. "We will see, but I think that airBaltic will not be able to fly without financial inflows," said the Prime Minister. Thus, the coming weeks may be decisive for the future development strategy of the largest Latvian airline and its relationship with the state.