Opinion piece. Author: Ilona Bērziņa
The “mistake in communication” was [Latvian Transport Minister Kaspars] Briškens’ inability to explain to residents the decision to lower the capital of airBaltic by half a billion euros in a proper and timely manner; the “mistake in communication” was [Latvian Minister of Defence] Andris Sprūds’, mildly putting it, inaccurate statements in regards to the Russian drone’s unexpected entry of Latvian air space. Now it turns out that Latvian residents’ shock over the news that 4 670 airBaltic flights will be cancelled this summer was also a “mistake in communication”.
Efforts to sweep the airBaltic problem “under the rug” use a well-known tactic – first an announcement on Friday, the 3rd of January, that the coalition will decide on changes in the airline’s management, then an announcement later in the evening of Monday, the 6th of January, explains the ruling coalition will not make this decision, rather the company’s work will be evaluated at a shareholders’ meeting on the 21st of January. Considering that even minister Briškens had to step in with a statement on the 3rd of January following airBaltic’s scandalous announcement, we have to conclude the government’s comments were mainly intended to show that [Latvian Prime Minister Evika] Siliņa is keeping tabs on everything. The only ones who demonstrated a strong position in all this was the Union of Greens and Farmers (ZZS), who stick to the opinion that [airBaltic CEO] Martin Gauss has lost the party’s trust and should be dismissed.
Martin Gauss: aircraft leasing is the most profitable part of the business
The root of the problem is that airBaltic is still unable to avoid losses, and it is likely the reduction of the company’s capital by EUR 571 million before the initial public offering (IPO) may not have been enough to solve everything. The Chairman of the Council of airBaltic Klāvs Vasks announced on the 2nd of January – the same day when the airline announced the cancellation of 4 670 flights this summer season – on Linkedin that “additional loans from the state are likely unavoidable”.
This means it is very likely the inability of “Pratt & Whitney” to perform timely maintenance of engines of three of the airline’s Airbus A220-300 aircraft was called for because it allowed the airline to get rid of unprofitable routes, including the recently opened ones.
As economist Aivars Strakšas wrote on Facebook: “First Mr Gauss announced that he will cancel close to five thousand flights because the engines were bad and had to be repaired a lot because the manufacturer could not deal with the amount of work. He then clarified the total number of affected aircraft is three, which caused further confusion, because there were nine grounded aircraft in 2024 and the planned flights were somehow, thank God, were performed despite this.” German Lufthansa, meanwhile, continues using the 21 Airbus A220-300 that are leased to them by airBaltic along with the entire crew.
People are shocked not only about the fact that approximately 67 000 passengers were basically thrown out, but also because the tickets to the cancelled flights were still up for purchase on airBaltic’s website until the 2nd of January (included). Refunds, however, will be available within 21 days. This means airBaltic will be able to keep using this money this whole time.
On the 6th of December, LTV programme “Rīta Panorāma” asked Martin Gauss why the airline leases its aircraft instead of using them for its own flights. Gauss said the airline’s current business model provides for focusing on two directions – “wet lease” and sale of tickets for its own flights, adding that the leasing of aircraft is the more profitable of the two.
Tālis Linkaits: problems with engines will continue for several more years
Former Latvian Minister of Transport Tālis Linkaits sees nothing criminal in the cancellation of 4 670 flights. When asked if it is possible airBaltic learned about delays with engine maintenance only shortly before Christmas, Linkaits told BNN yes, reminding that airBaltic and Pratt & Whitney signed a comprehensive maintenance contract in September 2024 for aircraft equipped with PW1500G GTF engines. As for delays with engine maintenance, Tālis Linkaits said: “This is a common problem in the aviation industry, in practice of “Pratt & Whitney”, and work with engines in general. Wizz Air just recently announced similar problems with several dozen aircraft grounded due to engine shortages. Airlines are aware this problem will continue for several years. I assume airBaltic depended on the new contract, and that this contract will not be completed on time.”
airBaltic’s answers to questions asked by BNN
After the airline announced the cancellation of flights, BNN asked the airline for explanations for this decision. Below we have the responses received from airBaltic’s Corporate Communication Office.
Just how many aircraft are in need of engine maintenance if the total number of cancelled flights reaches 4 670?
Currently the number of affected aircraft is very volatile, and this can vary over a short period of time. The airline is forced to cancel only approximately 5% of all flights planned for 2025.
Why was a situation when several Airbus A220-300 aircraft require engine maintenance at the same time? Was there really no way to distribute maintenance over a set period of time? If there was no way for that, then why?
airBaltic’s main priority is safety, and timely engine maintenance is a major aspect for ensuring it. The airline tightly follows the maintenance schedules set by the engine manufacturer (Pratt & Whitney) and international monitoring institutions, EASA (European Union Aviation Safety Agency). Certain technical inspection and repair intervals are mandatory and indivisible in order to guarantee maximum flight safety. Therefore, if several engines have reached the maintenance cycle set by the manufacturer and the regulators at the same time, the airline does not have the flexibility to divide this procedure into smaller periods of time.
Why did the announcement about the cancellation of 4 670 flights come only on the 2nd of January 2025? Was this not something that was known before?
Estimates from Pratt & Whitney turned very variable. The engine manufacturer’s inability to complete maintenance obligations had a significant impact on airBaltic’s fleet of Airbus A220-300. Based on changing forecasts, it was clear at the end of 2024 that this reasoning would force airBaltic to adjust its summer schedule. This was done in a timely manner – before the start of the summer season – so as not to cause more disruption during peak travel times. Affected passengers can now opt for alternative airBaltic flights or request a full refund.
Why are the majority of cancelled flights to countries that were only recently announced as new destinations by airBaltic? Does it not cause irreparable damage to the reputation of airBaltic and also the Latvian state in these countries?
When analysing its route network, airBaltic always considers a number of interrelated factors such as airport loads, flight demand, available flight times and other related strategic aspects in order to minimise the impact on passengers. When choosing to temporarily reduce the number of flights, airBaltic tries to focus on those routes where the flow of passengers is stable and economically justified. Based on a thorough and in-depth analysis of the route network, it was decided to adapt the flight schedule for the summer season to the current situation.
Doesn’t this mean artificially raising the company’s 2024 turnover at the expense of these 4 670 cancelled flights?
The cancelled flights do not affect airBaltic’s 2024 financial results, as bookings were purchased for flights in 2025. The 2024 financial plan and budget of the airline were already prepared in advance, and forecasts for the financial results of the previous year were provided at the time of the announcement of the results of Q3. In addition, information on the financial indicators for 2024 will be released this spring, when it is also planned to present forecasts for 2025.
Is it still possible to book a flight on airBaltic’s website that will be cancelled this summer?
Cancelling affected flights is a time-consuming process and can take several hours. With the adjustment of all flight schedules in the system, the specific flights will no longer be available for purchase.
Will airBaltic compensate its customers for flight cancellations?
In case of cancelled flights, airBaltic acts in accordance with all applicable European Union passenger rights requirements. For passengers whose flight is cancelled, the airline offers you the option to change your flight reservation or request a full refund free of charge.