LV: airBaltic LVL 100mn austerity package approved.

By bne IntelliNews October 4, 2011
A final agreement on providing additional capital of LVL 100mn to the national air carrier airBaltic was signed between the government, minority shareholders of the company and creditors. Full agreement details are not disclosed yet, but governments previous demands for providing support to the company are met. As reported this week, government approved increasing the capital of airBaltic by LVL 57.67mn (EUR 82mn), should the private shareholders of the company Baltijas Aviacijas Sistemas (BAS, controlled by companys CEO Bertold Flik and holding 47.2% of companys shares, the rest being held by the state) comply with governments conditions. BAS is expected to invest LVL 50mn, proportional to its share in the company, to cover operational losses. It was also announced that communication between the government and BAS improved in the past few days, as the company submitted some demanded documents, including disclosing its beneficiaries. National air carrier airBaltic posted unaudited loss of LVL 34.2mn (EUR 48.7mn) in 2010. Companys financial performance this year was not yet officially announced, but according to previous reports by the ministry a government-ordered audit of airBaltic showed losses of about LVL 13mn in Jan-May 2011. airBaltics supervisory board proposes the government to increase the capital of the company by LVL 63.68mn. Air carriers second shareholder Baltijas Aviacijas Sistemas (BAS) controlled by airBaltic CEO Bertold Flik (owning 47.2% of airBaltic shares, the rest owned by the state) is constantly in tension with governments representatives over transparency of airBaltics management.
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