The minister denies that this constitutes a bail-out.

Latvian Prime Minister Evika Silina said: "The government has unanimously agreed to take part in purchasing the shares, alongside private investors."

"We will do so to the same volume, and will not exceed the rate offered. airBaltic is currently working closely with the world's largest banks, which are capable of investing on such scales," Silina went on.

However, members of the Saeima, the Latvian parliament, have expressed concerns that neither they nor the public have a full overview of the company's operations, and called for a thorough audit by the state auditor to remedy this.

Today's vote at the Saeima on the funding of airBaltic was essentially the second of its kind, ERR's Latvia correspondent Ragnar Kond reported, as the parliament recently opted to allow the finance ministry to purchase stocks in the majority state-owned company, using budget funds.

Finance Minister Arvils Ašeradens (Unity) confirmed that this option would not be considered with regard to other companies.

airBaltic, which is due to float on the stock market by the end of the year, is currently experiencing a boom period, with passenger numbers having grown by about 20 percent on year; turnover even more, at 26 percent.

Relating to this, as a major regional hub, Riga Airport is also seeing an influx in passengers from Estonia.

However, by the end of July, the airline has to repay €200 million borrowed by issuing bonds five years ago, but for which it currently lacks the funds.

Meanwhile debate in Latvia over whether such use of taxpayer money is really appropriate is ongoing.

Ainars Šlesers, chair of the right-wing Latvia First party at the Saeima, called for an immediate and thorough audit into airBaltic's activities.

"The supervision of the company's activities over the past few years has been unacceptable. Especially now, when changes are happening and more money is being directed there," he said.

Finance Minister Ašeradens said the government decided to buy the stock in preparation for the IPO, and he and other leaders have said that this does not represent state aid, but an investment made on equal terms with the private sector, one from which the state also earns profits, via interest.

Transport Minister Kaspars Briškens (Progressives ) said: "We see a clear economic benefit in investing. The state will earn the same return on interest as private investors. On the other hand, it will undoubtedly develop the Latvian capital market."

The stock purchase is likely to start next week, "Aktuaalne kaamera" reported.

Latvian public broadcaster LSM reports airBaltic, following a loss-making 2022, reported audited revenues of €664,289 million last year, a rise on year of over a third. The company reported profits just below €34 million for 2023.

LSM also says there are no immediate plans to open an IPO in respect of airBaltic, even as the idea has been touted for several years now, in part due to investor hesitancy in the wake of the pandemic and the invasion of Ukraine.

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