Airport, Latvia, Transport

Bertolt Flick.

The company's share capital is LVL 2000.

Flick is the board chairman at the company and its sole owner.

airBaltic Vice-President for Corporate Communications Janis Vanags declined to comment on the reasons why Flick founded the new company.

As reported, airBaltic's management made the decision to buy the airline's shares, currently owned by Scandinavian Air Service or SAS.

LETA has information that a bank in Latvia will provide the funding for the deal, but its name has not yet been revealed.

The deal will be finalized January 31, 2009, as SAS informed LETA. By January 31 next year, SAS is to receive LVL 14 million in cash. SEB Enskilda investment bank is the consultant for SAS in this deal.

Transport Minister Ainars Slesers (Latvia's First Party/Latvia's Way) told LETA, via his advisor Girts Dripe, that he is informed about the decision made by the airBaltic management, and approves of it.

It is unclear yet whether airBaltic's management will be able to attract the necessary funds, but if they do, Slesers will be pleased. In his opinion, the deal proves airBaltic management's confidence in the airline at a time when the state has no money in order to buy out airBaltic shares from SAS.

As reported, in mid-August, SAS offered to sell its airBaltic shares to the state of Latvia. The Latvian government, the holder of controlling interest in airBaltic, decided earlier this month that it would not use its right of first refusal on SAS stake in airBaltic.

The main reason for the SAS decision to sell its shares in airBaltic is the government's past refusals to privatize airBaltic. Slesers has said on several occasions that he would not support privatization of airBaltic, believing that this would be damaging to the state.

In 2007, airBaltic turned over LVL 163 million, or 40.6% more than in 2006.

airBaltic was established in 1995. The two key shareholders are the state of Latvia (52.6%) and SAS (47.2%).