LV: airBaltic CEO admits ,,brand case" faults.

By bne IntelliNews September 28, 2010
In his interview to De Facto TV show, CEO of national air carrier airBaltic Bertold Flik admitted that he mislead the general public and Communication Ministry when he previously argued that transfer of airBaltic's brand to Batijas Aviacijas Sistemas (BAS) was not paid for. BAS financial reports show that airBaltic paid about LVL 0.1mn (EUR 0.14mn) for using its own brand to BAS this year. To remind, in December 2009, BAS (controlled by Flik and owning 47.2% of airBaltic shares, the rest owned by the state) acquired the brand name from airBaltic for EUR 13mn in an unannounced deal, which PM and EconMin later called a fraud that substantially decreased the value of the state-owned company. Last week PM Valdis Dombrovskis claimed that Flik now refuses to return airBaltic brand from BAS possession back to airBaltic, demanding that the sate buys the brand name out. As reported, tensions between Flik and the government grow, as last week PM Dombrovskis demanded that State Prosecutors Office reviews the agreement on running airBaltic board between BAS and the government, which was signed by ex-Communication Minister Ainars Slesers during his last week in office and sufficiently limits government's influence on BAS. PM stressed that it wasn't approved by the parliament, neither by the cabinet.

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