airBaltic's New Business Plan Doesn't Automatically Mean New State Investments, Says Minister

Latvia's cabinet is set to review and decide on airBaltic's new business plan, a strategic document designed to ensure the airline's long-term financial stability and gradually decrease its dependence on state funding. The plan, developed in collaboration with international financial and strategic consultants, was submitted to the Ministry of Transport and the State Chancellery for evaluation in early July.

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airBaltic plays a crucial role in Latvia's economy, ensuring international connectivity for our country and the entire Baltic region, as well as strengthening Riga's importance in international air transport.

The core principles of the new business plan revolve around four key areas: ensuring operational continuity, reinforcing Riga's position as a central aviation hub for the Baltic region, maintaining regional connectivity, and achieving financial sustainability. The political party JV has publicly announced its support for the plan, highlighting its objective to stabilize the company and attract private investment.

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The new business plan is a crucial prerequisite for the company's financial stabilization, further development, and capital attraction.

Transport Minister Rihards Kozlovskis emphasized that airBaltic plays a crucial role in Latvia's economy, facilitating international connectivity for the country and the wider Baltic region, while also bolstering Riga's significance in international air travel. He views the new business plan as a vital prerequisite for the airline's financial stabilization, future development, and capital attraction.

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The approval of the new business plan in itself does not automatically mean agreement to new state investments.

Addressing public concerns about previous state investments in airBaltic, the party stated that approving the new business plan does not automatically commit the government to further state funding. Any future decisions regarding state capital investments will be evaluated separately, based on rigorous economic and legal assessments, and with a strict adherence to the state's interests. The aim is to stabilize operations, restructure capital, and attract private financing.

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Any future decision on investing state funds must be evaluated separately, based on economic and legal considerations and strictly adhering to the state's interests.