“Judging by the signals from airBaltic CEO Martin Gauss, it is likely unavoidable that the state will have to invest money into this airline again. If we pay attention to what he said in his interview, it can be interpreted as a hint for the government – get the money ready,” BNN was told by politologist Filips Rajevskis.
At the airBaltic shareholders meeting on the 21st of January it is planned to evaluate the work done by the company’s council. However, it is unlikely we will see any surprises. As BNN was told by Filips Rajevskis, it is still possible there may be some changes in the council.
“I get the feeling the people who have the right and the power to take action still do not understand what to do with all this.”
When asked why the Latvian government acts as though 97.97% of this company does not belong to the state, the politologist responded that he believes the main problem is the inability to comprehend the true extent of airBaltic’s value and a complete lack of experience in managing large commercial enterprises. “This is fatal disconnect of the government from real business. The people who make decisions concerning this company on a government level have never managed anything bigger than a small team, if anything. airBaltic, on the other hand, is a multi-million company. To understand how to manage it, you need to have at least some experience.”
When asked why the shareholder is holding onto Martin Gauss as the manager of Latvia’s national airline, Filips Rajevskis said he does not have an answer to that. “In a normal situation, when there is such a discrepancy between what has been promised by the management of the company and what is happening in reality, the shareholder or the council starts the process of replacing the chairman of the board. I don’t think there would be many problems with finding a replacement. “airBaltic is not any any worse situation than many other airlines.”
When asked to comment on the strong position held by the Union of Greens and Farmers in regards to the removal of Martin Gauss from his post as CEO of airBaltic and how this could assist with the replacement of the entire management board, Filips Rajevskis mentioned he is sceptical. “Martin Gauss has worked in this business for 13 years. He knows well how this country functions. This is why he feels secure in his post and is confident enough in his communication.”