How will the story of airBaltic end if a serious investor is not found? 0 11

“Overall, the financial situation of this enterprise is not such that it could go public with an initial offering. I think both the new management of the company and the politicians are aware of this,” noted Purgailis.

According to him, neither the financial condition of the company nor the overall situation in European capital markets is currently favorable for going public. Therefore, the idea of attracting a strategic investor is becoming more frequent, although Latvia has already had a difficult experience in this direction.

At the same time, the number of passengers and flights is growing; however, the number of flights is increasing faster than the passenger flow, which reduces aircraft load factors and puts pressure on profitability.

An additional challenge is the bonds maturing in the coming years, which are considered a significant burden on the company's balance sheet. If a serious investor is not found, it may be necessary to make a decision about a new capital increase involving the state. At the same time, any new state investments are a politically sensitive issue, especially in an election period.

Participants in the discussion also acknowledged that, despite financial difficulties, the national airline has significant economic and strategic importance. A wide route network from Riga enhances the country's accessibility, promotes entrepreneurship, and attracts investments. However, there is an increasing opinion that such a company should be viewed more as a subsidized public service rather than a source of profit for the state.