RIGA - In the midst of the Covid-19 crisis in the world, airBaltic is evaluating re-start options for when scheduled flying is possible again. There are different scenarios that are looking at several months of interruption and the potential revenue decline. airBaltic currently has a strong cash position. To continue the successful performance of airBaltic as before the crisis the airline has reached out to its Shareholders – the Latvian State and Lars Thuesen (Aircraft Leasing 1 SIA) – to address the potential need for equity increase by strengthening the financial position of the company further.
Lars Thuesen, minority Shareholder of airBaltic (Aircraft Leasing 1 SIA): “Currently the whole airline industry has been severely impacted by Covid-19 crisis, including airBaltic. Right now, we have to react and prepare the company for a different future and obviously not all airlines will be able to continue. However, I believe that airBaltic has a strong position and will come out of this crisis. To recover from a total standstill and a slow start up, airBaltic will need a strong capital base. It would not be prudent if the company’s shareholders would not discuss how to capitalize the company to address the future needs. As a minority shareholder, we are evaluating the options together with the Latvian government.”
"The government has already supported the conversion of the Treasury loan in the amount of 36.1 million euros and is ready to invest additional funds in the company's equity. The Ministry of Transport will support balanced action and a clear action plan so that the national airline can overcome the crisis and return to normal operations as soon as possible. This is a difficult time for our economy, so it is particularly important that state support is given to a company that will be able to emerge from the crisis even stronger and better financial structured. This is in line with the state's long-term development interests,” emphasizes Tālis Linkaits, Minister of Transport of the Republic of Latvia.