Airport, Financial Services, Investments, Latvia, Legislation, Transport

Prime Minister Valdis Dombrovskis: ”The government has made all the necessary resolutions and expressed readiness to participate in stabilizing of the financial situation of airBaltic because the minority shareholder is also ready to do it by constructively fulfilling the government’s conditions. The government has fulfilled its tasks and current responsibility lies in the hands of BAS.”

Minister of Transport Uldis Augulis expressed the conviction that it is possible to meet the government’s conditions related to removal of Bertolt Flick from the post, termination of the Shareholders’ Agreement and retaining the Riga airport as a base airport of airBaltic as well as conditions related to returning of the assets which are necessary for operation of airBaltic until the general meeting of airBaltic shareholders to be held on September 29.

In such case, at the general meeting of airBaltic’s shareholders a decision will be made on changes to the statutes of airBaltic and on the approval of a new council of the company composed of five members, which, on its turn, will decide on the appointment of the board of airBaltic in composition of three members. The government has also assigned the Ministry of Transport with a task to start work on the selection of candidates who will work in the council and the board of airBaltic.

Representative of the government’s financial consultant Prudentia Kārlis Krastiņš expressed satisfaction over the government’s resolution, defining precise criteria and government’s readiness to constructively solve the problems of the air operator when the criteria are met.

”The indications which we have received show that the minority shareholder has changed its style of cooperation and that there is an opportunity to agree on the necessary solution to airBaltic,” stressed  K.Krastiņš.

The government funding for airBaltic will be provided as the Treasury’s loan to the company with an opportunity to capitalize it. A part of the funding that the government and BAS plan to invest in airBaltic will be channelled to ensure operative work and a substantial share of the funding will be invested in the development of the company, including, changing of the air fleet.

The state of Latvia as a majority shareholder owns 52.6% shares of the air operator airBaltic while the private shareholder Baltijas Aviācijas sistēmas owns 47.2%. The government of Latvia has attracted the financial consultant Prudentia to assess the financial situation of airBaltic and to decide on further activities of the air operator.

The shareholder meeting to formally finalize the capital increase of airBaltic is scheduled for September 29.

airBaltic serves 80 destinations from its home base at Riga, Latvia. From every one of these, airBaltic offers convenient connections via North Hub Riga to its network spanning Europe, Scandinavia, Russia, CIS and the Middle East.

Audio recording of the press conference that was held after the Cabinet sitting: http://t.co/6FjW2UFN

Information on the chronology of the government’s resolutions: http://www.mk.gov.lv/lv/aktuali/zinas/2011gads/09/150911-mk-01/