Latvian Prime Minister Evika Siliņa has indicated she is prepared to risk the collapse of the ruling coalition in order to secure support from the Union of Greens and Farmers in the Saeima for granting a short-term loan to the national airline airBaltic, according to her statement on the X.
She stated that ZZS had offered support for the loan in a parliamentary vote on Tuesday on the condition that Transport Minister Atis Švinka resigns.
“If the price for securing support for airBaltic is the collapse of the coalition – I am ready for it,” Siliņa said, emphasizing that support for the airline is more important to her than maintaining the current government coalition.
She has invited coalition parties to a meeting on Thursday, the 16th of April, at 8:00 a.m. “to decide on the ability to continue working together in the interests of the state.”
As previously reported, ZZS parliamentary faction leader Harijs Rokpelnis told journalists after a meeting with Švinka and Siliņa that
the party had not yet made a final decision on the loan and wished to continue discussions.
Rokpelnis stated that ZZS has a clear vision of how to steer this important Latvian company toward a competitive and profitable business model, noting that several preconditions would be necessary. However, he did not disclose the details of the proposal.
Neither Siliņa nor Švinka revealed the substance of the offer after the meeting, noting that the board of The Progressives Latvia would continue discussing the issue. None of the participants publicly commented on whether ZZS had also demanded that the minister take personal responsibility for repaying the loan, potentially by resigning immediately.
Siliņa stressed that airBaltic is an important company not only economically but also as a long-established Latvian brand. She noted that without proper recognition of this, finding a solution will be difficult regardless of political affiliation, both for coalition and opposition parties.
She added that she had already begun discussions with opposition parties to seek solutions
amid the sector’s crisis and necessary changes to the airline’s business plan. According to her, political discussions are also influenced by the approaching elections and concerns about how to explain to the public an unpopular decision to allocate additional funding for the airline’s daily operations, including fuel and other operational costs. However, she believes that such open discussion may help reach a decision.
The Prime Minister emphasized that the main challenge lies in explaining the decision to society. While some citizens understand the situation, it is generally difficult for the public to grasp complex political processes involving the allocation of additional budget funds. At the same time, she pointed out that these funds belong to the public, just as airBaltic is effectively a publicly owned company.
Siliņa described the situation as something of a deadlock, as not all information about a partially private, partially state-owned company operating in a highly competitive international market can be disclosed. Therefore, a politically reasonable way out must be found.
Rokpelnis stressed that the first priority is to gain full confidence in how the company will change its business model
to become genuinely profitable, calling this the key issue. He also highlighted the need to reach a decision that would be economically beneficial for Latvian society and the national economy.
As reported, the government’s decision to grant a 30 million euros short-term loan to airBaltic has not yet been approved by the Saeima Budget and Finance Committee due to ZZS opposition. The party had promised to decide after meeting with the Transport Minister.
New Unity has stated that airBaltic’s contribution to Latvia’s economy and society is undeniable and strongly supports the loan to address financial difficulties caused by rising aviation fuel prices linked to the conflict in the Middle East.
Similarly, Progressives support the loan as a means to stabilize the company
amid sharply increasing fuel costs that affect profitability.
Earlier, Andris Šuvajevs noted that if ZZS continues to delay its decision, the Progressives may seek support from opposition parties. He also rejected the idea that his party might give up the Transport Minister position, stating that this is not the first time ZZS has created obstacles.
On the 13th of April, Siliņa convened an extraordinary government meeting to assess the situation in the aviation sector and at airBaltic. According to the Transport Ministry, external factors such as the Middle East conflict, rising fuel prices, and suspended routes have significantly increased the airline’s costs, making the 30 million euros loan necessary to maintain operations until a new business plan is implemented.
The airBaltic group’s turnover last year increased by 4.2% to 779.344 million euros, while losses amounted to 44.337 million euros, 2.7 times less than the previous year. In 2025, the airline carried 5.2 million passengers, a 1% increase compared to 2024.
Last summer, Germany’s national airline Lufthansa became a shareholder in airBaltic.
Currently, the Latvian state owns 88.37% of the company, Lufthansa holds 10%, Danish investor Lars Thuesen’s company Aircraft Leasing 1 owns 1.62%, and 0.01% belongs to others. The company’s share capital is 41.819 million euros.
Following a potential initial public offering (IPO), Lufthansa’s stake would depend on market valuation, but it is expected to retain at least 5%. The Latvian government has agreed to maintain at least 25% plus one share after the IPO.
Last August, the government decided that Latvia, along with Lufthansa, would invest €14 million each in airBaltic ahead of the potential IPO. However, due to financial results and market conditions, the IPO has been postponed and is no longer considered a viable capital source for 2026.
The company’s annual report states that despite expected operational improvements, airBaltic is projected to operate with negative free cash flow in 2026 and may require an additional 100–150 million euros injection to finance operations during the 2026/2027 winter season.
Minister Švinka has emphasized that an IPO is not the only option for raising capital, and the airline’s management has been given broad authority to explore various financial instruments. Therefore, the company’s key task for 2026 will be not only cost reduction but also attracting additional capital.
Read also: Kulbergs: airBaltic cannot continue living on loans