Latvian airline airBaltic may require additional financial support to continue operations, stated Latvian Prime Minister Andris Kulbergs. He noted that the government intends to first review the carrier’s updated business plan and assess whether the company can transition to a sustainable financial model without ongoing state aid.
The Prime Minister remarked that airBaltic’s previous development plans – which envisioned expanding the fleet to 100 aircraft and increasing passenger traffic to 10 million annually – were overly ambitious. Kulbergs believes it is necessary to determine how thoroughly the economic viability of these goals was originally assessed and whether they aligned with the company’s actual capabilities.
At the same time, the Prime Minister emphasized airBaltic’s strategic importance to Latvia and the country’s transport system, though he stated that this factor cannot justify unlimited state funding for the airline. Transport Minister Rihards Kozlovskis is due to present the new airBaltic business plan in July, after which the authorities will determine the next steps regarding the carrier.
“We shall see, but I do not think airBaltic will be able to operate without an additional financial injection,” Kulbergs said.