Kučinskis: airBaltic will likely have to scale down operations

It is important for Latvia to retain its national airline airBaltic, but the company will likely need to narrow its operations, Finance Minister Māris Kučinskis (AS) said in an interview with LETA.

The decision on airBaltic's future does not depend on the government but on the company itself, the minister stated. Latvia cannot simply inject money, as it would be considered state aid, which is strictly monitored in the aviation sector. Bankruptcy would not be favorable, but direct subsidies are no longer possible.

Kučinskis believes that the new business plan promised by the company's CEO should be awaited. He suggests that the plan may include giving up an excessive number of aircraft, which is disproportionate for Latvia. The minister also regretted that airBaltic has no partner – Lufthansa was previously involved, but it is unclear how much they are willing to engage.

In Kučinskis' view, Latvia does not need to retain 98% ownership of the company – the priority is to ensure connectivity to and from Riga. He noted that earlier plans were based on transit passengers from Russia and Ukraine, which have now ceased. On the positive side, airBaltic's market share in Riga has decreased to about 50%, and the airport is attractive to other airlines. Therefore, the idea that airBaltic alone will provide connections is no longer valid. The business plan must be awaited and solutions evaluated.