airBaltic and Transavia announce major restructuring and cost-cutting plans

Airlines airBaltic and Transavia are implementing major restructuring plans to improve financial stability.

Latvian carrier airBaltic is preparing to potentially lay off between 500 and 700 employees, representing approximately 20% of its 3,000-person workforce. The cuts are expected to impact bases in Riga, Vilnius, and Tallinn. The restructuring includes reducing its Airbus A220-300 fleet and increasing the use of ACMI aircraft leasing. The company is currently in discussions with unions regarding potential workload reductions for pilots and cabin crew. The Latvian Ministry of Transport has emphasized that the process must comply with national labor laws and EU directives.

Separately, Transavia has announced a large-scale cost-cutting program to boost profitability. The airline reported a 1% margin last year and aims to increase this to at least 8% to fund fleet renewal and ensure financial health. While specific details on job cuts have not been finalized, labor unions have expressed concern that wage reductions could lead to a shortage of aviation technicians.