airBaltic: Latvian government seeks mandate for up to 30 million euros in financing

The Latvian government is requesting a mandate from the Saeima to participate in securing up to 30 million euros in additional financing for the national airline, airBaltic. Transport Minister Rihards Kozlovskis clarified that this is not direct state aid, but rather a request for the Saeima to assist in temporary financing if necessary. The amount could range from zero to 30 million euros.

Additionally, the government plans to seek Saeima approval to extend the repayment deadline for a previous 30 million euro state loan from August 31 to December 31. As of July 24, airBaltic had repaid 12.9 million euros of the principal and interest on that unsecured loan.

This move follows an approved business plan by the airBaltic board aimed at improving liquidity. The plan involves raising 225 million euros in temporary financing and includes a significant reduction in the airline's planned fleet, scaling down from 100 aircraft to approximately 40 by 2031. The airline expects to operate about 36 Airbus A220-300 aircraft by the end of 2026.