Expert: airBaltic faces growing pressure to cut flights outside Riga
As Latvian national carrier airBaltic cancels routes, concerns have been mounting over the airline's funding priorities, potential management changes, and the knock-on effect this can have on Tallinn Airport, which airBaltic flies from.
A major part of the issue is the question why Latvian state funds should be used to cover flight connections to and from Tallinn; airBaltic is owned by the Latvian state, though plans to float it via an IPO were announced last year.
As reported by ERR News, in the meantime airBaltic is set to cancel 19 routes during the summer season of 2025, cutting a total of 4,670 flights on all routes.
The airline will end flights from Estonia to Dubrovnik, Croatia, and the planned Hamburg route for the summer of 2025 will not be opened.
Speaking to "Terevisioon," aviation expert Sven Kukemelk said: "As of today, every third passenger who goes via Tallinn Airport is an airBaltic customer, so this will certainly exert a very strong impact."
"We are talking about the fact that Estonia is coming to be on the periphery in terms of aviation. We do not have any home-based carriers, and connections are incredibly valuable for us," he went on.
Estonian state airline Nordica was declared bankrupt late last year.
"The most difficult aspect to this situation is that the current rhetoric in Latvia, calling for the board to be held accountable and suggesting that the Latvian state will likely need to make an additional capital injection into airBaltic, raises questions among Latvian taxpayers and politicians as to why Latvian state funds are being used to enable flights from Tallinn, Vilnius, Tampere, etc.," he continued
"Flying from Riga is more comprehensible," Kukemelk said.
Kukemelk also expressed concerns about the potential replacement of airBaltic's management, stating; "If airBaltic's management is replaced, there is no expertise within Latvia to run an airline at a global level."
"However, the more they move in that direction, the worse it will be for passengers flying from Tallinn. More jets will be sent to fly elsewhere, be it Lufthansa, SAS, or someone else."
At the same time, this should not lead to a situation where passengers flying to and from Tallinn with airBaltic will be left high and dry, he said.
"If a flight is canceled, the airline is obliged to offer either alternative transport to the destination or a refund," he noted concerning the economic effects of this.
Kukemelk also advised travelers purchase additional insurance, if a passenger fears that due to a canceled flight they will lose money on already booked accommodation or car rental.
In any case, the expert said, airBaltic's decision to cut routes may be driven by economic factors like low demand, not just political or strategic considerations.
Kukemelk also expressed skepticism whether the airBaltic IPO will go ahead.
"I am, of course, skeptical about whether this will happen at all. I don't see them being able to start paying dividends. And there is no great profit expectation either; they are more of a volume business."
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Editor: Andrew Whyte, Urmet Kook
Source: 'Terevisioon'