Latvia proposes unified Baltic airline for long-term strategic benefits

Latvian Prime Minister Andris Kulbergs has proposed the long-term strategic creation of a unified airline for the three Baltic states. Following a meeting in Riga with Lithuanian Prime Minister Mindaugas Sinkevičius, Kulbergs suggested that once the situation regarding Latvia's national carrier, airBaltic, is resolved, Latvia, Lithuania, and Estonia could explore forming a joint aviation company.

Kulbergs noted that while there is currently no concrete proposal, he intends to discuss the idea with the prime ministers of all three Baltic nations. He argued that a unified airline would offer strategic benefits, including enhanced security and the ability to better manage resources during crises, such as the COVID-19 pandemic. Additionally, a joint carrier could help attract investment and support large-scale events in the region.

Separately, the airBaltic board has approved a business plan to improve liquidity. This plan includes seeking 225 million euros in temporary financing and a long-term recapitalization involving new debt and equity. The plan also involves adjusting the company's fleet, with a goal to operate 36 Airbus A220-300 aircraft by the end of 2026.