AirBaltic Navigates Chapter 11 with Strategic Workforce Adjustments

AirBaltic is negotiating with labor unions on workforce adjustments following its decision to file for Chapter 11 bankruptcy in New York. CEO Erno Hilden indicates that changes, including a reduction in capacity and restructuring of the airline's wet lease business, are essential for its survival amid industry challenges.

AirBaltic is engaging in discussions with labor unions to finalize an agreement on workforce adjustments. This development follows the airline's voluntary filing for Chapter 11 bankruptcy in New York, as confirmed by CEO Erno Hilden on Monday.

Hilden asserted that with plans to decrease capacity, workforce changes are inevitably forthcoming. He emphasized the importance of these consultations, stating that concrete figures will emerge once this process concludes.

Filing under the U.S. Bankruptcy Code aims to facilitate AirBaltic's debt restructuring, shielding it from creditors, and addressing the industry-wide crisis exacerbated by the Iran war. Hilden, who previously guided Scandinavian Airlines through a similar situation, noted that operational continuity would be maintained. Attention will primarily focus on altering the airline's wet lease operations, which involve leasing aircraft and crew to other airlines.