Background is that Helvetic Airways, which provides ACMI for Swiss, filled a complain (not sure if officially or unofficially) regarding the underpaid and overworked AirBaltic pilots who also provide ACMI for Swiss. Like unethical competition or something.
That's the least of AirBaltic problems right now, I believe that bankruptcy will come before 2025, IPO is officially cancelled for this year due to the continuing losses which are adding to the enormous debt

I would love to know why all you guys are talking about bankruptcy? What are your sources? Where do these rumours come from? Looking at their numbers from Q3, it does not look that bad, to be honest.
No offense - I am just trying to understand.

FlyingZiggy, I have no inside knowledge about AirBaltic,

but a general answer to your question.

One way of financing your company is via bonds. A bond is a debt with a fixed interest rate and a fixed payback date (of the debt).

If you make a bond with a long runtime (=payback date long in the future) and during times your business is very stable (giving you a low interest rate), it can happen that your business outlook deteriorates during the runtime of the bond and once your bond is up for renewal (= you need to pay back the debt and find someone to lend you the same amount of money again, (if you do not have the cash to just pay the debt off)) then it could be that due to your now bad business outlook no-one wants to lend you money again or just for very high interest rates.

This can bankrupt you immediately if you do not get any new bond or it can bankrupt you over time due to the now higher interest rate.(which is a cost).

I have no inside info either but lets see if you have different numbers than the pessimist posters.
You say that numbers look good but with a quick googling I saw that for the first 9 months of 2024 they had 48 million losses
Posters say that they are already in 570 million debt to Latvian State. Is it true or you have different numbers? In case it's true they can go bankrupt the moment EU orders to return this debt, like what happened to Malev. It's a miracle that European Commission hasn't involved yet
Some posters say that an IPO is coming, some say that it was canceled. What's the truth?
I googled and I saw this video among many articles about the collapse of this carrier, so it's not only rumors in our forum

Thanks all for your replies, appreciate it! :-)
As for me, the only numbers I have seen are the officially published ones - I have no inside knowledge either. As far as I remember though, a good part of their losses are not even their fault, for example the engine issues which have been a pain to many A220 operators.
I do not know how high their debt towards the latvian state is.
What seems odd to me is - why would they let an airline go bankrupt that is profitable to the state and that also helps out many other airlines with wet lease contracts?

Because they can only pump so much money in to it and still stay in power... Is it really profitable if they make a small profit on paper but are hundreds of millions in debt? Tax payers don't want their money to prop up an expensive status project, they only care about cheap tickets. And if AB collapses, Ryanair will takeover. And the tax payers money can go to stuff they actually want.

You are welcome!
Malev airlines, the flag carrier of Hungary, operating for 70 years went bust for a debt of 130 millions when EU ordered state funds to be returned. Airbaltic debt is 570 millions to state.
It doesn't matter if it is their fault, in the video I uploaded there are some explanations but who cares.
Seeing the official numbers, it doesn't look profitable if they lost another 48 millions in 2024 so far
What do you mean seems odd let it bankrupt? Pump more money? Who is gonna do it? It is against EU regulations for the state to fund airlines. A private investor? If he buys the company, also buys the debts. Who will buy a business with 570 millions of debt and current losses?
Some other airlines would benefit in case of bankruptcy as 50 A220s would return to the lessor who would rush to lease them in a bargain price
Latvians taxpayers wouldn't have to fund further a state business. Population in Latvia is 1,8 million people, I don't think their economy can support throwing hundred of millions to state projects

Plenty of sources. Just read this article by the Estonian Toomas Peterson, who has been the head of both Estonian Air and the Estonian Civil Aviation Administration (Lennuamet)
https://news.err.ee/1609425802/aviat...-at-some-stage

Some interesting points
airBaltic, which reported a loss of almost €90 million for the first half of 2024..

"The biggest negative signal actually was that they got a loan from the market at only 14.5 percent interest, which is still terrible these days. Basically, it shows that it's just a pyramid scheme in financial terms, and that at some point it just has to collapse," Peterson said.

But to put it crudely – if they only got a 14.5 percent interest loan from the market, that shows that essentially the end is near," Peterson said.

Apparently the IPO has been postponed. https://www.airliners.de/air-baltic-...ingungen/78071

Due to "difficult market conditions". Don't know what these are, airlines are all having huge load factors and good profits,

Does anyone knows how the Latvian CAA provides validations to ICAO pilots to operate EASA registered aircrafts?
It's not only airbaltic, other operators from this corner of EU are advertising positions for ICAO licensed pilots as well
How EASA is accepting that? It could spread...
To some posters who will call me names, neither EASA or EU are a ''race'', I only care about the degradation of this job in EU, in terms of conditions

This situation is, of course, primarily about degradation. They offer a certain pay rate, which is insufficient to attract enough EASA-licensed pilots. As a result, they have to look for alternatives, such as pilots with ICAO licenses. Typically, Malta facilitates validation for these licenses, and I believe Estonia might also do so, although I’m not entirely sure about the latter. It is all about not to offer proper pay package to push EASA pilots out of the EU itself.

Any recent feedback about assessments ?

Also, can someone bring new information about contracts, Terms and conditions, and also something about the company, such as schedule, salary , benefits, environment in general and this kind of stuff?

Really appreciate.

Happy landings

The Estonian state owned xfly went bust last month. They were providing ACMI for SAS
Baltic states aren't the Russian money laundry that used to be before the war, something that has a huge impact in their economy, everything is collapsing from healthcare, pension system up to state owned airlines

The economic problems are of course not caused by a lack of "money laundering" by "russians", but by dramatically increased energy costs, trade sanctions, massive spending on defense and high core inflation. All of it a direct result of the insane aggressions by Putin's Russia and the war in Ukraine. The Baltic states have in general exemplary societies among the formerly sovjet-occupied states, with advanced digitalisation and lower tax than most others.

Ooops
https://www.aerotime.aero/articles/a...or-summer-2025

Thats the final blow

airBaltic to cancel more than 4,500 flights this summer

https://eng.lsm.lv/article/economy/t...ummer.a582068/


AirBaltic cancels six routes from Lithuania

https://www.lrt.lt/en/news-in-englis...from-lithuania

Arrivederci AB. On monday Latvian government will decide if they had enough of Mr. Guass. Apparently idea of having IPO was a failure and the next step will be to find another wolf of wall street who can sell penny stock and prolong the suffering.

airBaltic likely to ask for more public money, says official

An additional capital injection from the state is probably inevitable, wrote Klāvs Vasks, Chairman of the Supervisory Board of airBaltic, on LinkedIn January 2.

https://eng.lsm.lv/article/economy/t...icial.a582137/

Corruption Prevention Bureau to probe airBaltic CEO Gauss' possible conflict of interest (The Baltic Times)The Corruption Prevention Bureau (KNAB) has opened a probe into airBaltic CEO Martin Gauss' activities to assess their compliance with the Law On Prevention of Conflict of Interest in Activities of Public Officials, KNAB representatives informed LETA.

According to the KNAB representatives, the anti-corruption bureau has received statements from private individuals about Gauss' alleged conflict of interest.

At the beginning of January, Girts Lapins of the National Alliance claimed in posts on social media that "Martin Gauss is the owner of the German company MaGau GmBH, which in turn owns the company 2e systems gmbh. This 2e systems gmbh is a supplier to airBaltic".

airBaltic representatives told LETA that 2e systems has been airBaltic's business partner since 2026, which is four year before Gauss received the offer to join airBaltic as CEO.

As he took the helm of airBaltic and learned that 2e systems is a supplier to the airline, Gauss declared his connection with this company. Gauss' asset declaration shows that he owns a 100 percent stake in Magau Gmbh, which holds a 1.25 stake in 2e systems, airBaltic representatives explained.

They underlined that notwithstanding his small stake in 2e systems, to avoid conflicts of interest, Gauss has always refrained from any involvement in decision-making related to this supplier. The company's representatives noted that any person can own shares in companies, which is a regular and commonplace practice in international business.

According to the airBaltic representatives, the airline fully complies with Latvian laws and corporate governance standards, and that Gauss disclosed his ownership of 2e systems shares when he joined airBaltic, which was also mentioned in his management board member contract in 2011. Gauss thereby refrained from any involvement in decisions related to this supplier, ensuring transparency and compliance with conflict of interest regulations.

The airBaltic representatives also stressed that questions regarding 2e systems has triggered discussions in the media and on social networks, which has resulted in spreading false information. In order to dispel any shadow of suspicion over airBaltic, the company's management and corporate governance, airBaltic has proactively contacted KNAB to provide an explanation of the situation and all necessary information to prove compliance of airBaltic and its management with the regulatory framework and established contractual policies.

The airBaltic representatives added that 2e systems provides IT services in the area of ticketing, e-commerce and website maintenance for several of the world's leading airlines, including airBaltic. According to airBaltic, the contract has been concluded and is maintained in strict compliance with airBaltic's contractual policies, ensuring full transparency.

Information on 2e systems' website shows that in 2019 airBaltic and 2e systems started a project to expand and enhance the airBaltic ticketing and booking solution. The two teams actively collaborated to expand the existing online booking solution that would support airBaltic's growth plans.

As reported, the government coalition on Monday did not yet decide on replacing airBaltic CEO Martin Gauss and will instead wait for decisions of the airline's shareholders.

After the weekly coalition meeting, Prime Minister Evika Silina (New Unity) said that airBaltica is a company of national importance, its mission is to ensure the mobility of Latvia's people and it must perform this mission well. "Unfortunately, the announcement at the beginning of the year of flight cancellations was not fully explained," said Silina, adding that the announcement initially confused the public.

According to the prime minister, the coalition is counting on the shareholders' meeting scheduled for January 21 to assess the performance of the national airline's current management.

Silina added that airBaltic is doing well overall and work needs to continue.

Among coalition partners, the Union of Greens and Farmers has so far been voicing the harshest criticism of the airBaltic management. After the Greens/Farmers' board meeting on January 3, where the situation with airBaltic was discussed, the party's chairman Armands Krauze said that Greens/Farmers have lost confidence in Gauss and that he must not continue to run the company.

As reported, performance of the supervisory board of national airline airBaltic will be evaluated at the company's shareholders meeting on January 21.

Transport Minister Kaspars Briskens (Progressives) stressed that airBaltic is a strategically important company for the country, which contributes directly not only to the aviation industry, but to the entire Latvian economy. In order to ensure continued growth of the airline, the company's management has pledged to raise EUR 300 million for implementation of the airline's business plan.

"People have to keep their promises and, if circumstances change, always have a clear plan B. We judge the work of the supervisory board and, in particular, its chairman, Klavs Vasks, based on results, correct and timely communication, and the ability to manage the company even in challenging times," said Briskens.

airBaltic has announced that it will cancel 4,670 flights from all its bases for the summer season 2025.

The cancellations are a result of unexpected delays and prolonged engine maintenance by its supplier, Pratt & Whitney. The engine manufacturer's inability to meet its timely maintenance obligations has impacted the operational capabilities of airBaltic's Airbus A220-300 fleet, forcing the airline to adjust its summer schedule.

After this announcement, Briskens said on X that the Transport Ministry has instructed the supervisory board of national airline airBaltic to promptly explain the airline's decision to cancel a number of flights and its impact on Latvia's connectivity.

At the same time, Briskens reminds that the management of airBaltic - including Gauss and Vasks - must keep their promises to raise EUR 300 million to implement the company's business plan and to ensure that airBaltic's activities are in the interests of the state of Latvia and passengers.

It has also been reported that the share capital of airBaltic will be reduced by EUR 571.293 million in preparation for an initial public offering (IPO), the government decided at a closed cabinet sitting on August 30, 2024.

The terms of the share capital reduction state that airBaltic's current share capital is EUR 596.473 million, which means that after the planned reduction it will be EUR 25.179 million.

The company's share capital currently consists of 25,647,282 Class A shares with a nominal value of EUR 10 each, 74,323,152 Class B shares with a nominal value of EUR 3 each, 113,164,518 Class C shares with a nominal value of EUR 1 each, and 38,660,300 Class D shares with a nominal value of EUR 0.1.

As it prepares for the IPO, airBaltic has decided to simplify its share structure. As a result, the nominal value of all Class A, B and C shares will be reduced to EUR 0.1 and EUR 571.293 million will be allocated to offset accumulated losses from previous years. Shareholders will not be paid any remuneration or compensation in connection with the reduction in the nominal value of these shares.

Thus, the share capital of airBaltic after the reduction will be EUR 25.179 million, consisting of 251,795,252 dematerialized shares with a nominal value of EUR 0.1 per share. Each share will entitle the holder to one vote at the company's shareholders' meeting, a dividend and a liquidation allowance.

Briskens said earlier that the talks with airBaltics' strategic investor are not being held to sell a controlling stake but that the plan is to sell a minority stake in preparation for the IPO.

Bloomberg news agency reported, citing people familiar with the matter, that German national airline Lufthansa is considering taking a stake in airBaltic ahead of the Latvian state-owned carrier's proposed IPO.

Briskens has not yet officially disclosed whether the potential strategic investor is Lufthansa, as well as how many shares in airBaltic could be sold to the investor and for how much. "Work is ongoing. There must be a mutual agreement to disclose such information. As soon as the transaction documents are finalized, both sides will immediately comment on it," the minister said earlier.

At the same time, Briskens stressed that the responsibility for the capital increase lies with airBaltic CEO Martin Gauss and Vasks. "The performance of the company's management will be evaluated on the basis of the results achieved," the transport minister said.

Hope they go busted

Why do you hope them going out of business?

Btw, Here is a clue why they won't:

In EU is illegal for the states to fund airlines. Maybe there was an exemption back in COVID, but it's 2025 now. If their only option to survive is state funds, this ain't gonna happen
You didn't quote me, but I believe that EU airlines which are importing ICAO licensed desperados to cut the labor cost of pilots in Europe, better go under before that spreads

Understood

Hello Guys.
Any recent feedback for Senior First Officers with fast track upgrade interview and assessment?
Also, with someone can share some infos from inside, such as benefits, salary, environment, schedule etc, it’s very welcoming.

Thank you in advance.

How far to bottom are you willing to reach for an EASA validation and an EU work permit?

I have an EASA ATPL with current type.

Go for it now then. AB is about to go bankrupt and you might bee too late fo an interview. Bring some warm clothes in case office will be closed and in -20 you will freeze to death walking back to terminal to catch a flight back to Brasil.

Please, just apply. They took a contract for ACMI in Uruguay, non of the European pilots wants to go there. For Latin American pilots should be fine. Though financial situation gets worse and worse

I’ve just applied to AB SFO, any news from assessment ? Thank you

Also, I have some concerns about medical certificate at Latvia/AIR BALTIC.

Someone flying at Ab or Latvia, could please PM me?
thank you

They were advertising bases throughout baltics, and you end up in Uruguay for 3k a month paying taxes in Latvia
Soviet mentality and latin american one found a proper match

Hi, feel free to send me a message, I work at BT as FO. Some users here are who have not passed airbaltic assessments, but still obsessed with the company, are trying to paint a varey bad image, but it’s not really true.

This Uruguay ACMI project can keep them alive for few more months, nobody would buy shares of a company with one billion euro in debt

There you go.
Lufthansa Group strengthens wet lease partnership with airBaltic

Article says airbaltic will take 14 millions from LH, but airbaltic's debt is over a billion with 14,5% interest

Concerning dept there is an Option in the bonds to be payed back early.

If there is no geopolitical shakeup the IPO takes place and with this money the bonds will partly be payed back.

The valuation at the time of the IPO should be much higher than the 14 Mio Lufti payed for 10%.

just my 2cents

The actual amount is not important. The 10% stake means that they won't let it go bust whatever happens.

What if tomorrow European Commission asks the 540 millions to be returned to state, like in Malev case which sent it under or the creditors demand the other 500 millions of debt? LH will pay a billion?

What if they don't ask for it after LH's lobbyists whisper something in their ear?