Latvia’s government is in talks with a strategic investor to help the struggling state-controlled airline, airBaltic. Prime Minister Andris Kulbergs confirmed the negotiations, stating that the goal is to secure the airline’s finances and prevent a potential default.
Airline’s Financial Strains
airBaltic has been facing financial difficulties due to rising costs and the loss of access to the Russian and Ukrainian markets following Moscow’s war in Ukraine. The airline has also been impacted by the COVID-19 pandemic and the Middle East crisis.
The Latvian government has provided a short-term loan to airBaltic, which is due to be repaid in August. However, the airline is still seeking additional funding to ensure its long-term sustainability. A meeting is scheduled for August 3, where airBaltic will seek short-term financing from bondholders.
Kulbergs emphasized that the Latvian government’s main condition for any investor would be to maintain airBaltic’s hub at Riga airport, where it is the largest airline. The prime minister expressed optimism about the potential investment, stating that it would be a good proposal for the investor.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
