At the shareholders’ meeting held on Tuesday, airBaltic shareholders accepted the decision made by the government on the 20th of January to terminate Klāvs Vasks as Chairman of the Council of airBaltic and Kaspars Ozoliņš and Andris Liepiņš as members of the Council, as confirmed by Latvian Ministry of Transport.
The ministry notes it is the institution’s goal to ensure the continuity of the business of airBaltic and the responsible transfer of management of the company, as provided for in the mutual agreement with the current Council, which will continue to perform its duties until the next meeting of shareholders, which is scheduled for the 11th of February.
The ministry reminds the selection procedure to find new council members has commenced to ensure ongoing processes in the airline continue and airBaltic is able to accomplish strategic goals.
As previously reported, at the meeting of airBaltic shareholders this Tuesday, it was decided to dissolve the airline’s existing council on the 11th of February. Once all of this is done, it will be possible to attract a strategic investor for airBaltic. According to unofficial information, it is Germany’s national airline Lufthansa.
State Secretary to the Ministry of Transport Andulis Židkovs explained that even though the existing council members will be removed from their posts, minority shareholder Lars Thuesen is in a different situation. He is bound by the shareholder agreement. “He [Thuesen] will remain on the council regardless of representatives of the state appointed there. His place on the council is guaranteed as an existing shareholder,” added Židkovs.
Briškens claims the agreement for the replacement of airBaltic council will not affect the efforts to find a strategic investor.
The minister said negotiations continue, adding there are still certain documents the two sides have to coordinate and sign, as well as solve certain technical issues before a deal can be made.
On the 30th of August 2024, the Latvian government agreed at a closed meeting that the Latvian state should retain at least 25% plus one share in airBaltic after the initial public offering (IPO).
Briškens previously explained that negotiations with airBaltic’s potential strategic investors do not touch on the topic of sale of a controlling package of shares, rather the sale of a minority package before IPO, going into IPO, as well as the option to opt into IPO.
According to unofficial information, the potential strategic investor in question may be Lufthansa, which may acquire approximately 10% of shares in the initial deal.
airBaltic carried a total of 5.2 million passengers in 2024, up 13% from the year before, and 47,000 flights, up 7% from the year before.
The audited turnover of airBaltic in 2023 was EUR 664.289 million, which is an increase of 33.2% compared to 2022, as well as the company made a profit of EUR 33.852 million as opposed to losses a year earlier.Latvian state owns 97.97% of shares in airBaltic. Aircraft Leasing 1, which is owned by financial investor, Danish businessman Lars Thuesen, owns 2.03% of shares.