Four candidates nominated for third round in tender for airBaltic CEO

RIGA - Four candidates have been nominated for the third round of the competition for the post of CEO of the Latvian national airline airBaltic, Transport Minister Atis Svinka (Progressives) said in an interview with the Latvian Radio on Tuesday.

He noted that on Monday, July 21, the second round of the competition, in which eight candidates took part, ended and four candidates have been nominated for the next round.

The third round, according to Svinka, will take place in early August.

Asked whether the next CEO of airBaltic would be paid the same salary as the previous CEO, Svinka said that the salary would be lower. "The perception is that the remuneration should be different. Competitive in the industry, but much lower than that of [airBaltic's previous CEO Martin] Gauss," the minister said.

As reported, more than 40 applications from almost 30 countries, including Latvia, have been received for the position of CEO and Chairman of the Board of the Latvian national airline airBaltic.

The second stage of the selection process included in-depth interviews on the candidates' experience and management competences, as well as a personality assessment and other aspects of the assessment.

It was also reported, the airBaltic CEO advertisement did not specify the remuneration to be paid to the CEO, however, the airBaltic Supervisory Board has previously indicated that the remuneration will be an individual matter with the selected candidate. In 2024, the salary of the airline's former CEO Martin Gauss was EUR 838,568.

Until the tender process is concluded, the airline will continue to be managed by its current interim CEO and Chief Operating Officer, Pauls Calitis.

On April 7 this year, the Supervisory Board of airBaltic decided to dismiss the Chairman of the Management Board and CEO Gauss.

Currently, 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.

It is also reported that at the end of January 2025 an agreement was reached with German airline Lufthansa on investments in airBaltic of EUR 14 million. In exchange for the investment, Lufthansa Group will receive a convertible share giving it a 10 percent stake. This convertible share will be converted into ordinary shares at a later date, following the IPO of airBaltic.

After the IPO, the size of Lufthansa Group's holding will be determined by the potential IPO market price. The transaction also provides that Lufthansa Group will own at least 5 percent of the capital of airBaltic after the potential IPO. The Latvian government also agreed in August 2024 that the state must retain at least 25 percent plus one share in the capital of airBaltic after the IPO.