EC has approved a EUR 33.4 million recapitalization measure for airBaltic

• Published date: 24 May 2022
• Publication title: LETA

RIGA, May 24 (LETA) - The European Commission (EC) has approved a measure worth EUR 33.4 million to recapitalize airBaltic in connection with the Covid-19 pandemic, the press office of the EC Representation in Latvia informed LETA.

The measure was approved under the temporary state aid regulations. airBaltic, headquartered at Riga Airport, is the largest airline in Latvia and plays a significant role in the Latvian economy, especially as it provides essential connectivity services in Latvia, from Latvia to other European and international destinations, and from there - destinations to Latvia.

Due to the Covid-19 pandemic and the travel restrictions that Latvia and other countries had to put in place to limit the spread of the virus, airBaltic suffered significant economic losses and experienced a sharp decline in traffic and profitability.

The airline is currently at serious risk of default and insolvency. The main shareholder of the company is the Latvian state, whose ownership percentage in the airline after the recapitalization approved on July 3, 2020...