LV: Government seeks investors for airBaltic national carrier.

By bne IntelliNews August 28, 2012
In the European and British issues of the Financial Times, Latvian government published a call for investors to apply for purchasing a stake in the troubled national air carrier airBaltic by November 1 2012. Up to 50% minus one share is for sale. Communication Ministry commented that Prudentia consultant that was hired by the government to seek for strategic investors is responsible for the publication. Losses of airBaltic in H1/12 were LVL 23mn (EUR 32.7mn), CEO of the company Martin Gauss told the press recently. Companys revenues in H1/12 amounted to LVL 104.7mn, number of flights went down by 15% y/y and passenger turnover down by 11% y/y. Overall this year company plans to cut the losses from LVL 83.2mn seen in 2011 to LVL 33mn. As reported, troubled national air carrier airBaltic could start running with profits in 2015, Minister of Transportation Aivis Ronis told the press after a government's meeting dedicated to the company last month. Current business plans sees the company avoiding losses in 2014 already. To remind, in the end of 2011 47.2% airBaltic shares held by BAS were bought by the Transport and Communication Ministry, thus bringing the state's share in the company to 99.8%. As reported in H2/11, the conflict between the CEO of airBaltic Bertold Flik and the government ended with the resignation of Flik and appointment of Martin Gauss, a former CEO of Hungarian airline Malev. Flik was working as airBaltics CEO since 2002. Fliks resignation was one of the conditions of government-approved austerity package for airBaltic. Government approved increasing the capital of airBaltic by LVL 57.67mn (EUR 82mn), should the private shareholders of the company Baltijas Aviacijas Sistemas comply with governments conditions. BAS was expected to invest LVL 50mn, proportional to its share in the company, to cover operational losses. In the meantime, with the recent crash of Latvijas Krtajbanka which was one of the main creditors of airBaltics, the government doubted BAS's ability to increase airBaltic's capital and took over the airline completely.

Related Articles

EE: Estonian Air records EUR 49.2mn loss in 2012.

Estonian national airline Estonian Air recorded net loss of EUR 49.2mn in 2012, up from net loss of EUR 17.3mn in 2011. Operating loss amounted to EUR 35.8mn in 2012. Revenues of the company ... more

LT: Malsena acquires Latvian flour manufacturer Rigas Dzirnavieks.

Lithuanian flour manufacturer Malsena announced that it has acquired Latvian flour manufacturer Rigas Dzirnavieks. The company indicates that with the acquisition it will become the largest flour ... more

EE: Estonian Air to return excess Embraer airplanes.

Estonian national airline Estonian Air announced that it agreed to pay penalties for returning two excess Embraer E190 aircrafts to the manufacturer. The company has started restructuring and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss