On Thursday, the Latvian government approved the investment of €250 million in airline AirBaltic's equity aimed at helping the company cope with the economic difficulties resulting from the coronavirus crisis.
Chief Executive of AirBaltic, Martin Gauss said via in a statement (link in Estonian) with the investment, the company can start to carry out its new business plan which focuses on the restart of the company when international aviation recovers.
"This will help with the successful growth of the company when the effect of the coronavirus crisis starts to relax," he added.
According to the Latvian government's plan, AirBaltic will receive the investment in stages. Every part of the investment needs to be provided according to market rules and cannot exceed the financial loss made during the coronavirus crisis.
The European Commission also needs to approve the plan.
The Latvian government is currently the biggest investor in AirBaltic, but after the investment, the financial contribution would be 91 percent instead of the previous 80.05 percent.
On April 23, Air Baltic's supervisory board approved the new business plan submitted by the managementboard. The company will reduce the number of aircraft in the coming years, and after the crisis will only use newer Airbus aircraft.
Editor: Roberta Vaino