airBaltic supervisory board needs different competences in current situation - Transport Ministry

  • 2025-01-21
  • LETA/TBT Staff

RIGA - In the current situation, the supervisory board of Latvia's airBaltic national carrier needs different competences, Transport Ministry State Secretary Andulis Zidkovs told LETA, commenting on the ministry's announcement that the company's current supervisory board is resigning on February 11.

He explained that the decision to replace the airBaltic supervisory board was taken on Monday in view of the current situation, where the company is facing technical issues, including aircraft engine problems, as well as the final stage of attracting a strategic investor and moving towards an initial public offering (IPO).

"This also requires other competences, such as technical expertise, which the supervisory board has not had so far. We are also trying to strengthen our international aviation and financial market expertise. So we are looking for experts who can provide these competences," said Zidkovs.

Asked why the announcement on the replacement of the airBaltic supervisory board was made on Monday evening, Zidkovs said that this was not a decision of the shareholders' meeting, but a decision of the State as a shareholder. "When we agreed on this decision, we published it," the Transport Ministry official said.

He added that the airBaltic shareholders' meeting on Tuesday will take notice of the information on the replacement of the airBaltic supervisory board. The meeting is also scheduled to discuss the involvement of a strategic investor, but the government needs to make another decision, so this will be addressed later.

"Another [airBaltic] shareholder meeting has been called in three weeks, on February 11, so these issues related to the involvement of a strategic investor have yet to be considered by the government before a decision can be taken later," Zidkovs said.

He noted that airBaltic supervisory board chairman Klavs Vasks and supervisory board members Kaspars Ozolins and Andris Lapins have signed to leave the supervisory board, whereas Lars Thuesen, a minority shareholder, keeps his place on the airBaltic supervisory board irrespective of the government-nominated board members. "This seat is guaranteed for him as a current shareholder," said Zidkovs.

The Transport Ministry has approached both international candidates and candidates with technical expertise, the ministry official said without elaborating.

As reported, a meeting of airBaltic shareholders, which has been called for today, was scheduled to assess the performance of the company's supervisory board, but on the eve of the shareholder meeting, the Transport Ministry released a statement informing that an agreement has been reached on the airBaltic supervisory board's resignation on February 11.

By that date, the company will most probably have attracted a strategic investor, which according to unofficial reports is Germany's Lufthansa.

The company's supervisory board includes Klavs Vasks, Andris Liepins, Kaspars Ozolins and Lars Thuesen, and the first three of them will leave the supervisory board on February 11.

The parties agreed that the current supervisory board would continue to perform its duties until the next shareholders' meeting on February 11 to "ensure a responsible and orderly transition of the company's management". A new supervisory board is to be elected at the February shareholders' meeting.

As reported, Latvia's national airline airBaltic carried 5.2 million passengers in 2024, which is an increase of 13 percent against a year before.

In 2023, airBaltic carried 4.536 million passengers, which is by 35.7 percent more than in 2022, and conducted 44,100 flights, up 18.3 percent from a year ago.

In 2023 airBaltic's audited turnover was EUR 664.289 million, up 33.2 percent on 2022, and the company made a profit of EUR 33.852 million, compared to a loss the year before.

The Latvian state owns 97.97 percent of airBaltic's shares, while the financial investor, Danish businessman Lars Thuesen's Aircraft Leasing 1, owns 2.03 percent.