Government moves to block airBaltic brand sale

Aug 05, 2010
Oskars Magone

The sale gave ownership of the airBaltic brand directly to Flick.

RIGA - Latvian Prime Minister Valdis Dombrovskis has launched an investigation into the sale of the airBaltic brand to company CEO Bertolt Flick.

Dombrovskis has instructed the Transport Ministry, as the state's shareholder in "airBaltic", to evaluate whether it was legal for the airline's board and council members to approve the sale.

Economy Minister Artis Kampars lambasted news of the sale, saying it benefits Flick personally over the company.

“The transaction, published today, clearly shows that airBaltic CEO Bertolt Flick is working for his own interests rather than the company’s. This transaction is a blow to the airBaltic company’s value,” Kampers told business newspaper Diena Bizness.

At the end of last year Latvia’s national airline sold the branding and trademark of airBaltic and its subsidiaries -- including "airBaltic", "airBaltic.com", "airBaltic Travel.com", "airBalticHotels", "BalticMiles", and "Baltic Taxi" -- to Flick. Despite the fact that the Latvian government is the majority owner of airBaltic, transport minister Artis Kampers said the ministry only found out about the sale now after reading about it in the company’s annual shareholder’s report.

If it is established that members of the board or council have violated the Commercial Law, the transport minister Kaspars Gerhards will take appropriate legal action.

Flick's company, Baltijas Aviacijas Sistemas, already owns 47 percent of airBaltic.

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