Plans to increase capital into airBaltic have collapsed after courts rejected its legal protection claim. The carrier tried to gain protection in court after its majority stakeholder, the Latvian government, refused future investment into the airline despite recognising that it needs to operate.
The move has halted growth plans for the carrier, which has received backing from other shareholders and cannot accept more capital from them to develop. While the airBaltic continues to operate, it faced another knock last week when the government said it would look into establishing a new airline.
“Itis now no longer surprising why a solution regarding airBaltic has not been reached for more than six months, while at the same time details of the new airline will be clear within the coming days at the earliest and within two weeks at the latest, according to the government’s consultant,” said Bertolt Flick, president and CEO of airBaltic. “Confidence in Latvia’s national airline has been methodically and systematically undermined in the public rhetoric in order to pave the way for a potential new project”.