airBaltic faces major changes? Ambitious plan could cost hundreds of jobs

airBaltic's board has approved an ambitious business plan that includes securing 225 million euros in temporary financing and drastically reducing its aircraft fleet. The plan aims to improve liquidity by utilizing a collateral package for priority bonds maturing in 2029. A key component is the significant downsizing of the fleet, which is projected to shrink from a planned 100 aircraft to approximately 40 by 2031. This marks a substantial shift from previous projections, with the fleet expected to decrease from 51 aircraft at the end of 2026 to 36.

The Latvian Aviation Union (LAA) warns that this fleet reduction, estimated at around 30%, will likely necessitate significant staff cuts, potentially between 20% and 30% of the workforce. Dace Kavaša, president of the LAA, stated that the union believes the company's management did not adequately consider various employee-related aspects when developing the business plan, given the substantial decrease in fleet size and operational scope. She added that consultations with employee representatives were essential but were not conducted.

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The professional union believes that the company, when preparing the business plan, had to consider various aspects of reducing the number of employees, as this is associated with a significant reduction in the fleet and scope of operations.

Kavaša further criticized airBaltic's management, calling their statements about only now beginning a structural impact assessment misleading. She asserts that such scenarios were known during the initial planning phase. The LAA claims that airBaltic's management failed to comply with legal requirements regarding timely information and consultation before making decisions that significantly affect employees. The union reportedly received information about the business plan from journalists and was denied access to a presentation session.

The LAA considers the business plan, with its specific numerical targets for the fleet and route network, a strategic decision. They argue that consultations with the union should have commenced during the plan's development, not during its approval or implementation. The union also expressed concern about the role of a company established in Switzerland, suggesting a potential risk related to the plan's execution.

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The professional union believes that airBaltic's management did not comply with the requirements of the legislation regarding timely information and the start of consultations before making decisions on the business plan, which fundamentally has a significant impact on employees.