Brand buyback rejected

RIGA - The state will not buy back national airline airBaltic brands in any case, Transport Minister Uldis Augulis said in an interview with Latvian State Radio, reports news agency LETA. The Cabinet of Ministers was to hear Augulis’ report in a closed meeting on March 8 and, possibly, decide on further actions regarding the airBaltic brand.
In the radio interview, Augulis emphasizes that the state will not buy back airBaltic brands, taking into account the complicated budget situation. AirBaltic must continue work so the airline could buy the brands back itself from its shareholders.

Augulis also said that the price for the brands must be the same as that for which they were sold. He also said that the audited report on airBaltic operations in 2010 would be presented in mid-summer. Augulis added that he only knew at the moment that airBaltic turnover had increased significantly last year.

In an interview with LNT television’s morning show ‘900 sekundes,’ Augulis was asked to say what he thought of airBaltic President Bertolt Flick. The minister replied that the airline’s financial performance was of the greatest importance. If airBaltic posts profit for 2010, there will be no grounds for taking any measures against the airline’s management, said Augulis.
According to the minister, there have also been positive developments in the relations between airBaltic and Riga International Airport, as talks have finally resumed between both sides.

The Transport Ministry, which represents the state on the council of the national airline airBaltic, and the airline itself did not reveal what matters were discussed and what decisions were taken at the airBaltic council’s meeting on March 1.
AirBaltic shareholder Baltijas aviacijas sistemas, a company that belongs to Flick, previously offered the state to buy airBaltic brands back, the Pietiek.lv portal reported.

In December 2009, airBaltic sold six airBaltic brands (airBaltic, airBaltic.com, airBaltic Travel.com, airBalticHotels, BalticMiles and Baltic Taxi) to Baltijas aviacijas sistemas, and the deal was approved by the then airBaltic council.