Latvia Courts Strategic Investor for airBaltic's Financial Lifeline

The Latvian government is in talks with a strategic investor to support airBaltic's finances amid its risk of default. The airline, seeking short-term funding, is planning restructuring measures to stabilize its operations, aiming to secure its hub at Riga airport while pursuing ambitious growth targets.

The Latvian government is in negotiations with a strategic investor to improve the financial situation of the state-controlled airBaltic, Prime Minister Andris Kulbergs revealed to Reuters. As the airline strives to prevent a potential default, it plans to address its funding needs in an upcoming bondholders meeting on August 3.

Prime Minister Kulbergs confirmed ongoing discussions with a promising partner, though he withheld the partner's name. A condition for any investment will be maintaining airBaltic's primary hub at Riga airport. The airline hopes this proposal proves attractive to potential investors, despite not disclosing possible stake details.

AirBaltic has faced financial challenges due to increased costs exacerbated by geopolitical conflicts and pandemics. To ensure its financial stability and growth plans, the carrier is preparing a revised business plan and seeking external investment to support necessary restructuring measures.