LONDON – The European Commission has approved part of the Latvian Government’s €45 million equity investment into airBaltic. The investment is to help the airline get over financial losses owing to COVID-19 and the economic crisis.
The investment will be repaid via the sale of the shares when airBaltic goes public in the future.
Martin Gauss, Chief Executive Officer of airBaltic: “The support of our majority shareholder to overcome the crisis reflects the recognition of the positive impact airBaltic has on the economy. The European Commission has concluded that the COVID-19 pandemic qualifies as such an exceptional occurrence that exceptional interventions by member states to compensate for the damages linked to it are justified.”
airBaltic is responsible for more than 2.5% of the Latvian GDP. In 2020, airBaltic’s passenger numbers decreased by 73$ thanks to COVID-19. The Cabinate of Ministers in Latvia approved a €90 million investment into airBaltic. The Latvian Government is the majority shareholder of the airline. The remaining €45 million is still subject to European Commission approval.