airBaltic Will Continue Flights from Tallinn Amid Restructuring
The Latvian airline airBaltic will continue to operate flights from Tallinn and Vilnius, although under its new business plan it will reduce the number of destinations and downsize its fleet. The carrier’s main hub will remain in Riga, Jurgis Sedlenieks, deputy chairman of airBaltic’s supervisory board, told ERR News.
According to him, the airline will operate on fewer routes, but flights on the remaining routes will run several times a week. Some routes launched this summer from Tallinn—including the one to Vienna—will continue to operate through the winter. Sedlenieks described Estonia as a very important market for the company.
According to the business plan approved on Wednesday, airBaltic’s fleet is expected to number around 40 aircraft in the future. Latvian Prime Minister Andris Kulbergs stated that the airline’s future depends largely on its creditors.
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According to Kulbergs, the state, as the majority owner, effectively lost control of the carrier following the 2024 issuance of €380 million in bonds with a 14.5% interest rate. He also stated that airBaltic needs to raise 225 million euros in bridge financing using the bonds as collateral. The first meeting of bondholders did not take place due to a lack of quorum, and the next one is scheduled for Monday.
The Latvian prime minister noted that strategic investors are interested in the company, but they will not make any decisions until the restructuring is complete. According to him, negotiations may resume once issues regarding airBaltic’s strategy and matters related to its creditors have been resolved.
