Air Baltic on the Brink
Joined: Feb 2000
Aviation Qualifications: ATCO
Posts: 422
Likes: 307
From: Europe
Hmm, can't say one way or the other. They did expand quite rapidly over the past years operating 55 A220s. It included operations for Eurowings and Bruusels Airlines among possibly others.
Joined: Feb 2009
Posts: 945
Likes: 445
From: Austria
Also for Austrian and Swiss. Generally, Baltic is flying a lot of wetlease for the LH group.
Did not Lufthansa recently buy a major share in Air Baltic? If this tweet (or eXcretion?) is to be believed, and if LH wishes to maintain this arrangement, a generous donation might be a way to go here.
Did not Lufthansa recently buy a major share in Air Baltic? If this tweet (or eXcretion?) is to be believed, and if LH wishes to maintain this arrangement, a generous donation might be a way to go here.
Joined: Apr 2003
Aviation Qualifications: PPL
Posts: 10,588
Likes: 805
From: Northumberland
Joined: Oct 2020
Posts: 44
Likes: 5
From: Europe
Joined: Oct 2009
Posts: 10
Likes: 8
From: Here, There & Everywhere
To be frank it is not a surprise really, AB has been hemorrhaging money for many years now. Only reason why AirBaltic still exists is because government was always there to bail it out. For decades. Look at it's long term debt - its hundreds of millions. It's not making any profit, debt keeps growing. It was just a matter of time.
Joined: Dec 2011
Posts: 1,014
Likes: 38
From: UK
Feels like there is a lot of inconsistency from the EU on this subject. State aid for some. Yet I was at Air Malta 12 years ago where they were told to restrict their fleet just to 10 A319/320 aircraft for the same thing!
Joined: Apr 2008
Posts: 218
Likes: 52
From: Europe
Go see Croatia Airlines. hemorraging money like crazy and yet bailed out every time by Croatian government. Slovenia next door let its airline die after being sold to some bunch of suspicious people.
Joined: Feb 2009
Posts: 945
Likes: 445
From: Austria
Pleasant to fly on they are indeed. The A220 is a nice, quiet aircraft and I found the crews very pleasant as well on my few flights with them.
Here are a few reports on Baltics financial situation.
Aero.de reports that the Republic of Latvia had provided the airline with a short-term emergency loan of 30M€ to cover the spike in fuel costs due to the attack on Iran. It is due to be repaid already on 31st August 2026; there is no word on interest rates.
Some reductions to the flight schedule may occur.
The real millstone around the airlines neck is a 380M€ loan that carries an interest rate of 14.5% pA and has to be paid back by 14th August 2029.
Aerotelegraph basically confirms this. Additionally, it is reported that only 10% of the yearly fuel consumption are hedged, so they are hit hard by the high fuel prices. Latvian Prime Minister Evika Silina considers the airline relevant to Latvias economy and connection to the outside world, therefore the legal requirement for state support would be given. Parliament approval is required; the credit to Air Baltic is seen to be on the same level as the gas oil tax reduction and additional support for farmers. The credit is short-term in nature and due to be paid back by August. PM Silina considers further need for support rather probable, however, for that Air Baltic management would have to show an adapted strategy and convince the government.
CEO Andrejs Martinovs told LETA news agency that this loan would help stabilise the situation. "If nothing extraordinary is to occur, we will be able to pay the money back."
Here are a few reports on Baltics financial situation.
Aero.de reports that the Republic of Latvia had provided the airline with a short-term emergency loan of 30M€ to cover the spike in fuel costs due to the attack on Iran. It is due to be repaid already on 31st August 2026; there is no word on interest rates.
Some reductions to the flight schedule may occur.
The real millstone around the airlines neck is a 380M€ loan that carries an interest rate of 14.5% pA and has to be paid back by 14th August 2029.
Aerotelegraph basically confirms this. Additionally, it is reported that only 10% of the yearly fuel consumption are hedged, so they are hit hard by the high fuel prices. Latvian Prime Minister Evika Silina considers the airline relevant to Latvias economy and connection to the outside world, therefore the legal requirement for state support would be given. Parliament approval is required; the credit to Air Baltic is seen to be on the same level as the gas oil tax reduction and additional support for farmers. The credit is short-term in nature and due to be paid back by August. PM Silina considers further need for support rather probable, however, for that Air Baltic management would have to show an adapted strategy and convince the government.
CEO Andrejs Martinovs told LETA news agency that this loan would help stabilise the situation. "If nothing extraordinary is to occur, we will be able to pay the money back."
Joined: Dec 2006
Posts: 708
Likes: 103
From: Mauritius,soon or latter
Although it is interesting to see that small nations fight on "open" market- reality is that Latvia can not keep it on its backs.
Longer they stay i.n that game ( subsidizing business) greater will be deficit.
At some point in future bad financial frame always produces safety related problems.
Longer they stay i.n that game ( subsidizing business) greater will be deficit.
At some point in future bad financial frame always produces safety related problems.
