Past issues of airBaltic are to be resolved through the successful ReShape, in order to attract new investors.
RIGA- The Latvian national airline airBaltic has been informed that Baltijas Aviacijas Sistemas (BAS), a past shareholder in the airline, has made a complaint to the European Commission DG Competition early 2012 about the actions taken by the shareholders that subsequently led to re-shaping the airline.
Martin Gauss, Chief Executive Officer of airBaltic: “Our airBaltic ReShape business plan is a success, and we consistently achieve better-than-planned results every month. This achievement highlights that our business plan is robust, realistic and viable, and makes us attractive for potential future investors.
However, the complaint of BAS is a reminder to us that the past issues have to be clarified. For this, we have established a team of experts and advisers to tackle the issues, raised as a result of this complaint.
Our advisers have brought it to our attention that the European Commission potentially might take next steps and seek an in-depth evaluation of actions in the last quarter of 2011 taken by the state as one of the shareholders in airBaltic. In case that step is taken, airBaltic will raise serious concerns whether BAS as complainant has given an entire and complete picture to the Commission.
At the same time we believe this situation offers us an excellent opportunity to explain the details, context and factual background of the past actions aimed at eventually turning the airline around. We would welcome an opportunity to establish legal certainty and thus reassure our future investors.”
Two separate complaints have been lodged with the Commission – one by BAS on 9 January 2012, and another one by Inga Piterniece, a former board member of BAS, on July 18 of 2012.
Earlier this year, airBaltic announced its business plan airBaltic ReShape to return the airline to profitability and sustainable future development at Riga, which links the Baltic region with destinations in Europe, Middle East and Russia/CIS. airBaltic ReShape outlines the future development of the carrier, including the fleet modernisation, cost optimisation, operational efficiency, revenue enhancement and network improvements. By implementing airBaltic ReShape, the carrier plans improvements of LVL 330 million in the five years 2012-2016. airBaltic ReShape aims to return the carrier to profitability in 2014.
airBaltic serves 60 destinations from its home base in Riga, Latvia. airBaltic offers convenient connections via North Hub Riga to its network spanning Europe, Scandinavia, Russia, CIS and the Middle East.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
