Latvia, Legislation, Transport

Artis Kampars.

The minister believes that Flick has used shameless means to gain ownership of the airline's most significant asset, and as such has reduced the airline's value, the business portal Nozare.lv was told by Kampars' press secretary Sandris Sabajevs.

Kampars has resolved to take all necessary steps to ensure that the deal is annulled and that the airline's brand is returned to airBaltic ownership, stressed Sabajevs.

"The deal publicized today unequivocally shows that Flick has acted in his own, rather than the company's interest. This deal has reduced the value of airBaltic as a company," said an indignant Kampars.

As reported LETA, in December of last year, the Latvian national airline "Air Baltic Corporation" (airBaltic) sold the airBaltic brand and all related trademarks to the company Baltijas aviacijas sistemas, owned by airBaltic President Bertolt Flick, which owns a 47.2% stake in the airline, reports today's Dienas Bizness.

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.