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Still no noteworthy investors found for "airBaltic"

 RIGA, April 18 - So far, no investors have been found for the national airline "airBaltic" to speak of or, in other words, no investors have made a decision yet on potential investments in the airline, Transport Minister Anrijs Matiss points out in an interview with "Nozare.lv".

Matiss explains that there are two factors that hamper attracting investment to the airline. First of all, 2011 was not the most successful year for "airBaltic". The airline's losses reached LVL 84 million. "airBaltic" losses for 2012 will slightly exceed LVL 20 million. It has to be proved to investors that the airline's business plan is working and it will continue to operate. The second factor is the ongoing legal proceedings involving "airBaltic", and the related risks.

It is important that part of "airBaltic" private liabilities to "Latvijas Krajbanka" has been restructured and it is also necessary to restructure the remaining private liabilities. It is also important to continue work with the European Commission regarding state aid to "airBaltic". If the sustainability of the airline's business plan is proved, if the airline's liabilities are restructured and the existing legal risks eliminated, it will be much easier to offer the airline to investors, explains the minister.

The government's priority is a strategic investor, an airline that would not only financially participate in "airBaltic" development, but also help create new connections, passengers and destinations, adds Matiss.
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