The issue will be addressed in the closed part of the meeting. After the meeting, Prime Minister Andris Kulbergs and Minister of Transport Rihards Kozlovskis will speak to the media. The extraordinary government meeting will take place on the day when airBaltic is due to make another interest payment according to the terms of the bond issuance. The airline has not previously commented on whether it plans to make the interest payment of €13.775 million on August 14. A repeat meeting of airBaltic bondholders is scheduled for August 17, where a decision is expected to be made regarding the capitalization of interest payments for August 14 and November 14, meaning adding the interest to the principal amount of the bonds instead of paying it in cash. The first bondholders' meeting on August 3 did not take place due to a lack of quorum. The Minister of Transport previously stated that the government continues to assess the situation at the airline and has allowed the implementation of a business plan that includes negotiations with bondholders about the possibilities of attracting additional capital to ensure the continuity of airBaltic's operations, attracting investors, and maintaining Riga as the airline's base, while the state will retain at least 25% plus one share of its capital. This week, the airBaltic board approved a business plan that aims to improve liquidity by attracting temporary financing of €225 million, using a collateral package for the 2029 priority bonds, as well as reducing the planned fleet from 100 to approximately 40 aircraft by 2031. According to the business plan, Riga will remain the main center of airBaltic's operations, the airline will implement a new demand-based strategy for route network formation and will continue to ensure air connectivity in the Baltic region.
