Lithuania should not invest in airBaltic until it turns a profit – president

Lithuanian President Gitanas Nausėda said on Friday that Lithuania should not invest in Latvia's struggling national carrier airBaltic until the airline returns to profitability. He argued that the company must make radical decisions to cut costs and boost revenue, and that without guarantees of such a turnaround, making generous promises now would be irresponsible, since it remains unclear how the airline's recovery and profitable operation would be secured.

Nausėda stressed that all financial aspects and risks need to be carefully assessed before any potential acquisition of airBaltic shares is considered. At the same time, he acknowledged that Lithuania still has an interest in the airline's survival, partly because Lithuania will hold the presidency of the EU Council in the first half of next year, requiring frequent travel by Lithuanian officials to the capitals of all 26 other EU member states.

Divided political views

Lithuanian politicians are split on the matter. Prime Minister Mindaugas Sinkevičius said in Riga on Wednesday that Lithuania would consider acquiring a stake in airBaltic if Latvia made such an offer, but only after weighing all arguments and prioritising Lithuania's own interests. Transport Minister Jūras Taminskas took a more sceptical stance, saying he would not support such a move and describing it as an "emotional action."

Meanwhile, the Latvian parliament gave preliminary approval on Thursday to state measures aimed at stabilising airBaltic's finances, including the purchase of up to €30 million in interim financing bonds and the capitalisation of €50 million in existing bonds. Latvian Prime Minister Andris Kulbergs has called these measures the airline's last chance.