The Latvian government agreed to support acquiring up to €136m worth of airBaltic bonds as the carrier is majority state-owned, with changes in the law allowing the finance minister to authorise such purchases, increasing state debt to finance the acquisitions.
The airline is due to repay €200m state aid in July and is reportedly on track to do so, with the government considering buying the bonds alongside private investors, subject to a vote in Latvia’s parliament.
airBaltic has clarified that it is not planning to start scheduled services to the United States, despite applying for permission from the US Department of Transport to operate routes between EU countries and the US in order to tap into ACMI opportunities during the European low season.
The airline seeks to change its current DOT permit, which only allows codeshare arrangements, to permit it to operate with its own aircraft to the US following Latvia’s Category 1 status under the FAA’s IASA safety program in July 2023.
