The determination regarding the future of airbaltic is positioned as an internal corporate matter, rather than one dictated by the government. Authorities are currently adopting a monitoring stance while awaiting developments. A key obstacle cited is the inability of the state to inject direct capital, as such funding would likely be classified as state aid.
The minister emphasized that state aid in the aviation sector is subject to rigorous monitoring. While acknowledging that the bankruptcy of airbaltic would be detrimental to Latvia, the government has stated it can no longer sustain providing direct subsidies. Consequently, according to M.
Kunčinskis, the path forward hinges on the business plan that the company’s new general director has committed to presenting. The focus, therefore, must shift to the viability of this forthcoming strategy. Observers expect the new plan to incorporate significant structural adjustments, particularly concerning assets that the Latvian economy cannot sustain.
Specifically, the minister indicated that the plan must address elements deemed disproportionate, such as an excessive fleet size. The central challenge remains demonstrating a sustainable operational model. The sustainability of the airline’s future is thus predicated on the market viability outlined in the new corporate strategy, rather than continued public financial support.
The government’s role is thus defined by oversight, confirming that the ultimate decision-making power for the company’s trajectory rests with airbaltic itself.
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