Nordica bid not in airBaltic's business plan

Latvian carrier airBaltic has declined to submit a bid for the acquisition of Estonian state-owned airline Nordica, on the grounds that airBaltic is focused on expanding connections to other countries, including Estonia itself.
Several European companies submitted bids for the purchase of Nordica, but airBaltic was not among them. The company's CEO, Martin Gauss, told ERR that on the one hand, it was not viable for them to make an offer, and on the other, airBaltic currently has different development plans.
Gauss said: "We did not make an offer on Nordica, as we are currently subject to EU Covid aid restrictions, which prevent us from acquiring other airlines. Even if it were possible, we would not see Nordica as being an addition to airBaltic, since we aim to grow in Estonia based on our existing operations."
According to Gauss, airBaltic plans to expand in, and improve its connections to and from, Estonia.
"We have three aircraft already in Estonia, and we want to gradually offer more direct routes to and from here. We have ordered a lot of planes in recent years, and a certain number of these planes will also arrive on the ground in Estonia. As more aircraft get based in Estonia, we will be able to add new routes, in addition to seasonal direct flights," Gauss explained.
In January there was also discussion about the Latvian government deciding soon on taking the national airline airBaltic's minority share to the stock market.
According to Gauss, a decision has not yet been made, and in a meeting with Climate Minister Kristen Michal (Reform) and the Lithuanian Minister of Transport, this was not directly the focus in any case. That focus was instead on how to ensure connectivity with Europe and the role the airline plays in this.
"I think for any country which does not have direct access to the rest of Europe via rail or highway, ensuring connectivity is vital. We offer direct connections and transit connections via Riga. Connectivity with other countries is crucial for the growth of a country's gross domestic product, as well as in terms of the number of incoming tourists. The Baltic states in particular understand very well the importance of ensuring connectivity, and this was the focus of our discussions," Gauss went on.
airBaltic's turnover last year was reported at €668 million, with a profit of €34 million; the report stated that both figures were the highest ever.
airBaltic's sales revenue last year was 34 percent higher than for 2022, when it reached half-a-billion euros.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Andrew Whyte, Mari Peegel
Source: ERR Radio News, reporter Anett Peel.