LV: airBaltic posts EUR 18.5mn losses in Jan-May.

By bne IntelliNews June 29, 2011
Latvian national air carrier airBaltic had LVL 13mn (EUR 18.5mn) losses in Jan-May , Transport Minister Uldis Augulis told in an interview to Latvian Radio. Augulis noted that airBaltic earned LVL 5mn profit in April and May alone and that the LVL 13mn loss in five months of 2011 was much higher than planned by air carrier's management. Augulis urged the government to take measures on supporting company's liquidity, which could be injecting more capital, attracting new investors, issuing shares, etc. However, he added that the company did not show any vivid signs of insolvency. To remind, airBaltic is again in the centre of controversy with the government ordering KPMG to hold an audit of the company following announcements of EconMin Artis Kampars on the reportedly poor pre-bankruptcy financial state of the company. he audit is expected to be finished by July 4 2011 and the results of the audit are going to influence governments further decisions regarding its involvement in airBaltics capital. To remind, EconMin Artis Kampars came out with a controversial announcement claiming that national air carrier airBaltic suffered losses of about LVL 18mn (EUR 25.6mn) in H1/11 is close to bankruptcy. Kampars also accused companys management of knowingly driving the company into losses by channelling funds out of airBaltic. As reported, 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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