Latvian government backs further airBaltic stabilisation, defers temporary funding decision

The Latvian Cabinet of Ministers on Tuesday expressed support for continuing the financial stabilisation process of airBaltic, the country’s national airline. At the same time, no decision has been taken on whether the state could participate in providing temporary financing, according to information from the Ministry of Transport.

The ministry said the government’s approval on Tuesday concerns the continuation of the stabilisation effort. This means the search for ways to address the airline’s financial situation remains on the agenda, but no specific funding from the state has been approved yet. The question of possible participation in temporary financing is still open.

The decision indicates that stabilisation measures for the carrier will not be halted. However, it does not mean the government has already approved concrete investments or set their scale. The Ministry of Transport noted that no specific decision on participating in temporary funding has been made so far.

The government’s support can be seen as a political signal that keeping the airline operational is considered important. Yet this does not automatically mean state budget money will be allocated for temporary financing. Further steps will depend on separate decisions that the government still needs to make.

For now, the only clear aspect is that the stabilisation process will continue. What financial instruments or support mechanisms might be used has not been disclosed. The government has postponed the matter to future meetings.