Latvia's airBaltic may need to scale back operations as new CEO assumes role

Latvian finance minister Māris Kučinskis said the state cannot provide further direct subsidies to airBaltic and warned the airline will likely have to narrow its activities. He emphasized that any decision on the carrier’s future rests with the company itself, and that the government will only act as a facilitator while awaiting the new business plan promised by the incoming management.

Erno Hildēns, appointed as airBaltic’s chief executive on 1 December, earned €57,211 in December, about 18 % less than his predecessor Martins Gauss earned on average. Hildēns was selected through an international competition involving more than 40 candidates. The board also recently dismissed the former chairman and CEO, ending a decade‑long tenure. Kučinskis noted that retaining airBaltic is important for Latvia’s connectivity, but ownership of a 98 % stake is not required.

The minister highlighted that the airline’s market share in Riga has fallen to roughly 50 % and that the carrier must adapt to market conditions and its financial health without relying on state aid.