Kulbergs proposes future talks on a joint Baltic states airline
Latvia's PM Kulbergs told Lithuania's PM Sinkevičius he'd like to eventually discuss creating a joint Baltic airline once airBaltic's situation is settled; Sinkevičius reportedly showed willingness to talk.
During a meeting today, the prime ministers of Latvia and Lithuania discussed the possibility of eventually creating a joint Baltic states airline. According to Latvian Prime Minister Kulbergs, he raised with his Lithuanian counterpart Sinkevičius the idea that once the situation around national carrier airBaltic is resolved, Latvia, Lithuania and Estonia could strategically consider establishing a single Baltic airline. Kulbergs said Sinkevičius appeared willing to discuss the matter.
Kulbergs stressed that there is currently no concrete proposal on the table, but that he would like to raise the idea with all three Baltic prime ministers together. In his view, such a move would bring long-term strategic benefits to all three countries. He pointed to security considerations as one argument, noting that a joint airline would allow resources to be used more effectively during crises, as was the case during the Covid-19 pandemic. Kulbergs also noted that all three Baltic states are keen to attract investment and major international events, goals a strong joint airline could support.
airBaltic's financial situation
The idea surfaces as airBaltic works to stabilize its finances. The company's supervisory council recently approved a business plan involving 225 million euros in temporary bridge financing, alongside longer-term recapitalization of 225 million euros in new debt and 100 million euros in new equity. Part of the existing bonds is planned to be converted into equity. By the end of 2026, airBaltic's fleet is set to include 36 Airbus A220-300 aircraft, down from 54 currently, before gradually growing to about 40 by 2031.
On Wednesday, the Saeima's Budget and Finance Committee conceptually backed possible state participation in airBaltic's financial stabilization. Last year the company's turnover rose 4.2% to 779.344 million euros, while losses fell 2.7-fold to 44.337 million euros. The airline carried 5.2 million passengers last year. The Latvian state owns 88.37% of airBaltic, Germany's Lufthansa holds 10%, with the remaining shares split among other investors.
