PM: State is not a good aviation business supervisor; airBaltic needs strategic investor
Prime Minister Andris Kulbergs stated that the state cannot effectively oversee the aviation business and emphasized the need for a strategic investor for airBaltic. He met with a potential investor who submitted a concrete offer.
Latvian Prime Minister Andris Kulbergs (United List) announced that the state is not suitable for supervising the aviation business and that the national airline 'airBaltic' urgently needs a strategic investor. The Prime Minister shared this view on social media, also informing about a meeting with a potential investor who submitted a written offer to invest and help save the company.
On Monday, Kulbergs met with President Edgars Rinkēvičs to discuss the situation of airBaltic. The Prime Minister emphasized that the state, as the owner of the airline, lacks the necessary expertise and efficiency to manage such business, hence the need to attract private capital and experience.
The name of the potential investor and details of the offer have not been disclosed yet. However, the Prime Minister's statements indicate that negotiations for attracting a strategic investor are at a concrete stage. airBaltic's financial difficulties and need for additional funding have been known for some time, and the government is seeking solutions to ensure the airline's continued operations.
Experts suggest that without an external investor, airBaltic could face serious problems, including possible insolvency. The Prime Minister's announcement indicates that the government is committed to saving the national airline, while simultaneously acknowledging that the state's role in this business must be reduced.
