Air Baltic takeover talks

 Scandinavian airline SAS continues negotiations on taking over Latvian national carrier Air Baltic.

In an interview with the Latvian business magazine LietiskaDiena, Latvian head of the Scandinavian company Marek Pedersen said: "I think negotiations are in an early phase. There has been lot of speculation, but so far there have been no decisions. According to possible scenarios, SAS can either purchase Air Baltic or continue its operations as before. I don't know. I think, we have to wait for this summer and then we will see."

Pedersen expressed SAS's satisfaction with the current partnership: "Air Baltic is a very successful company which is developing and expanding dramatically. I am sure SAS is interested."

SAS is also interested in expanding their business in the region. "So far we have benefited greatly from cooperation with Air Baltic, they support our flights' network, but if there were a couple of cities in Scandinavia that would justify direct connections, we would launch them ourselves. Air Baltic would do the same. Our cooperation does not prevent us from doing something on our own," the magazine quoted Pedersen as saying.

Latvian Transport Minister Ainars Slesers told Latvia's Diena daily newspaper earlier that the Latvian government will have to make up its mind on Airbaltic soon, and that his proposal was not to sell the carrier off for the time being.

"We are the biggest shareholders, and it is necessary to invest in development," the minister said, adding that the decision had to be made by the end of this year.

Last June SAS announced it would seek to obtain controlling stakes in Latvia's Air Baltic, holding 47.2 percent, and in Estonia's carrier Estonian Air, in which it holds 49 percent. The Latvian state currently holds 52.6 percent of Air Baltic shares.