Lithuania open to airBaltic investment, but will focus on national interests

VILNIUS - Lithuania would consider any Latvian offer to acquire a stake in struggling airline airBaltic, but any decision would depend on an assessment of the country's national interests, Prime Minister Mindaugas Sinkevicius said on Thursday.

Meanwhile, Latvian Prime Minister Andris Kulbergs said he had proposed discussions on creating a joint Baltic airline.

"I stated very clearly that we are ready and will evaluate any proposal from Latvia, but we will do so in the context of security, cost and other important national strategic projects," Sinkevicius told reporters after meeting Kulbergs in Riga on Thursday.

"We can probably consider investments (in Air Baltic - BNS), but they must have an economic and security component among other aspects. Therefore, I said Lithuania is ready to consider a proposal once the Latvian side is ready to present it," he added.

The prime minister noted that the issue was "complex because the company's financial situation is very complicated."

Sinkevicius said he was asked during the meeting whether Lithuania would consider becoming a shareholder in Air Baltic following the model of SAS Scandinavian Airlines, which is co-owned by several Scandinavian countries.

Kulbergs told journalists he had proposed discussing the establishment of a joint Baltic airline, arguing it could bring long-term strategic benefits to all three Baltic states.

Kulbergs said that once the immediate issues regarding Air Baltic were resolved, Latvia, Lithuania and Estonia could strategically consider such an option.

According to the Latvian prime minister, Sinkevicius was prepared to discuss the idea, although no formal proposal exists yet. Kulbergs said he wanted to discuss the matter with ministers from all three Baltic countries.

"In the long term, this would be beneficial for our three countries from a strategic interest perspective," Kulbergs said.

He argued that a joint venture would be justified from a security standpoint, as it could be used during threats or crises similar to the COVID-19 pandemic. Furthermore, as all three Baltic states seek to attract investment and host major events, a joint airline would be advantageous in that context.

Earlier this week, Transport Minister Juras Taminskas said that if an offer to purchase shares were made, he would not support it, describing such a move as an emotional action.

On Thursday, the Latvian parliament gave preliminary approval for state participation in ensuring Air Baltic's financial stability. This includes up to 30 million euros in interim bond financing and the capitalisation of existing bonds worth 50 million euros.

Kulbergs said this week that this represented the last chance to save Air Baltic.

Last year, the Latvian Ministry of Transport officially offered Lithuania and Estonia the chance to acquire shares in Air Baltic, but Lithuania has received no further requests since then.