airBaltic stabilization process approved by Latvian government

The Latvian Cabinet of Ministers has approved the continuation of the financial stabilization process for the national airline airBaltic. While the government supports the ongoing process, it has not yet decided on providing temporary state funding; any such financial involvement would be considered separately.

The Ministry of Transport stated that the decision provides a basis for upcoming steps, including the implementation of a new business plan and managing relations with shareholders and bondholders. The state, acting as a bondholder, will participate in a bondholders' meeting scheduled for September 11 to represent Latvian interests.

In parallel, airBaltic Board Chairman Andrejs Martinovs confirmed the airline is focusing on its business plan rather than insolvency or legal protection procedures. To support this strategy, the airline has engaged Seabury Securities LLC, a specialist consultant, noting that the choice was based on expertise rather than cost. airBaltic has also reached agreements with certain bondholders and third-party financiers for interim funding of up to 257 million euros, pending necessary approvals from shareholders and bondholders.