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Thursday, 03.04.2025, 04:07
airBaltic brand sold to Flick’s company
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At the same time, the trademarks "airBaltic.com", "airBaltic Travel.com", "airBaltic Hotels", "Baltic Miles", and "Baltic Taxi" were also sold.
As Prime Minister Valdis Dombrovskis (New Era) told Latvian State Radio this morning, the airBaltic annual report has not yet been approved by the company's AGM. The prime minister notes that the state, as a 52.6% shareholder, will be able to have its say on the matter.
Dombrovskis noted that Flick will justify the sale of the airline's brand as an effort to attract addition financing. airBaltic representative Janis Vanags also told Dienas bizness that the sale brought in necessary finance at a time when the airline was in possession of insufficient capital, informs LETA.
According to the airline's 2009 annual report, the company's brand was assessed and certified at EUR 13 million, or LVL 9,136 million, and payment must be made by December 31, 2010.
The report also indicates that the airline must make monthly payments to Baltijas aviacijas sistemas for use of the brand and trademarks, writes "Dienas bizness".
Neither Transport Ministry State Secretary Anrijs Matiss, nor airBaltic Council Chairman Vigo Legzdins were aware of the need for such payments. Legzdins, however, claimed that the airline is able to use the brand for free, and that there would be an opportunity to buy it back after a five-year period.
Experts were divided in their opinions as to the effect of the deal on the value of state investments in airBaltic. Investment bank Prudentia partner Girts Rungainis indicated that: "If a trademark is worth more but is sold at a lower price, the state will of course lose share value. Secondly, this makes the sale of state capital more difficult, as the state no longer controls a significant asset."
Rungainis also indicated that with the airline's brand coming under the control of Baltijas aviacijas sistemas, future potential buyers could find a situation where it is necessary to buy not just airBaltic, but also Baltijas aviacijas sistemas.
«The Baltic Course» Is Sold and Stays in Business!
