We haven't seen companies emerge well from a negative spiral - Rungainis assesses airBaltic's future

Investment banker Ģirts Rungainis voiced concerns over the future of Latvia's national airline, airBaltic, suggesting that resolving its current financial woes would only offer a temporary fix. Speaking on the "Kāpēc" program on Delfi TV, Rungainis, founder and partner at financial advisory firm Prudentia, indicated that several aspects of the company's publicly available new business plan make him cautious.

The airline has fallen into what is termed a "negative spiral," a situation Rungainis believes is difficult for any company to overcome. "I have not seen companies that have successfully exited a negative spiral," he stated, highlighting the precariousness of airBaltic's current trajectory.

While Rungainis did not elaborate on the specifics of the business plan or the nature of the negative spiral, his comments underscore the significant challenges facing the national carrier. The airline industry globally has faced immense pressure in recent years, and airBaltic's situation appears to be a particular concern for Latvian financial experts.

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I have not seen companies that have successfully exited a negative spiral.