RIGA - Share capital of the Latvian national airline airBaltic has been increased by EUR 45 million to a total of EUR 596.473 million, according to Firmas.lv.
As reported, the European Commission (EC) on May 24 approved state support for airBaltic in the amount of EUR 45 million.
This amount includes a measure worth EUR 33.4 million to recapitalize airBaltic in connection with the Covid-19 pandemic. The measure was approved under the temporary state aid regulations. airBaltic, headquartered at Riga Airport, is the largest airline in Latvia and plays a significant role in the Latvian economy, especially as it provides essential connectivity services in Latvia, from Latvia to other European and international destinations, and from there - destinations to Latvia.
Due to the Covid-19 pandemic and the travel restrictions that Latvia and other countries had to put in place to limit the spread of the virus, airBaltic suffered significant economic losses and experienced a sharp decline in traffic and profitability.
The EC also established that the Latvian aid measure in the amount of EUR 11.6 million to compensate for the damage caused by Covid-19 was in accordance with the European Union (EU) regulations on state aid.
LETA also reported, the Cabinet of Ministers on August 17 last year approved an injection of EUR 90 million in the share capital of airBaltic.
On December 21 last year, under EU State aid rules, the EC approved a part of the Latvian government's investment of EUR 45 million into airBaltic share capital. On January 17, share capital of airBaltic was increased by EUR 45 million to EUR 551.473 million.