AirBaltic’s Chairman Klavs Vasks has said that privatisation talks have not progressed as anticipated, which may lead to further state funding requirements despite ongoing negotiations with a strategic investor.
Vasks highlighted the airline’s long-standing negative equity issues and emphasized the necessity for new financing to continue operations and meet strategic objectives, even if such funding might provoke public relations challenges.
While airBaltic had previously raised EUR340 million through oversubscribed bonds, the sustainability of its financial practices remains questionable, with the potential need for government assistance looming.
The airline’s projected IPO in 2025 is contingent on attracting a strategic investor, possibly Lufthansa Group, which could bolster airBaltic’s financial stability and growth prospects while supporting its transition to a publicly-listed entity.
Klavs Vasks shared “Attracting such [a strategic]investor is not only a significant financial support for the company’s capital, it also serves as a critical confirmation of the company’s operations and future growth opportunities. The potential IPO is also in progress with the earliest possible listing in 2025 and when the market conditions are right.”
