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.
Notice: Undefined index: social in /var/www/html/application/views/scripts/index/article.phtml on line 259

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