AirBaltic Navigates Turbulence with Workforce Adjustments Amid Bankruptcy

AirBaltic has initiated discussions with labour unions regarding workforce adjustments as it voluntarily enters Chapter 11 bankruptcy. CEO Erno Hilden explains the need to restructure due to reduced capacity caused by the Iranian conflict. Operations will continue as changes focus primarily on the 'wet lease' business model.

AirBaltic has commenced negotiations with labour unions to reach an agreement on workforce adjustments, following its decision to voluntarily enter Chapter 11 bankruptcy proceedings. This move, aimed at restructuring the company's debt, comes amid challenges exacerbated by the ongoing conflict in Iran, according to CEO Erno Hilden.

Hilden, with previous experience navigating bankruptcy processes at Scandinavian Airlines, assured that AirBaltic's operations would not be disrupted during the Chapter 11 proceedings. The most significant changes will impact the airline's 'wet lease' business model, which involves leasing aircraft and crew to other carriers.

Chairperson of the Latvian aviation union, Dace Kavasa, indicated that talks are underway to explore alternative employment solutions, such as part-time roles. However, there are still disagreements over the criteria for dismissals, with a resolution expected by the week's end.