Kulbergs: State should not run aviation business alone; airBaltic needs strategic investor

During the TV24 programme "Nedēļa. Post scriptum", Prime Minister Andris Kulbergs said the state should not take on the operation of the national airline airBaltic by itself. He noted that his aim is to prevent the company's development plans from failing, but if they do not succeed, the state would have to accept reality and consider next steps.

Kulbergs stressed that Latvia's interests include maintaining good international connectivity and a strong role for Riga Airport in the Baltic region. However, this does not mean the state alone should cover the airline's costs. "The state should not be in the aviation business," the prime minister said. In his view, airBaltic needs a strategic investor with whom development opportunities and risks could be shared. The aviation sector is highly sensitive to external shocks, including fuel price fluctuations, military conflicts, closed airspace and other unpredictable factors.

The prime minister was also sharply critical of the previous management of state-owned companies. He expressed surprise that for years no sufficiently critical questions had been asked about airBaltic's business plans, development strategy and financial calculations. Kulbergs said that when the state invests hundreds of millions of euros in a company, it should also ensure independent professional oversight to protect taxpayers' interests. He admitted being shocked that the state had not hired independent experts to represent its interests despite such large investments.

At the same time, the prime minister emphasised that Latvia should preserve its national airline and a wide network of destinations, as this is important for business and attracting foreign investment. Good international connections are a precondition for foreign investors choosing to develop their business in Latvia.

Kulbergs also expressed the view that airBaltic is by name a Baltic airline, and in the future the other Baltic states could become much more actively involved in its development and responsibility, rather than Latvia bearing the entire burden alone.