Will Air Baltic not make it to the stock exchange? The Prime Minister expects a 'Plan B' from the airline 0 4

The hosts of the TV-3 program asked Prime Minister Evika Silina live whether she still expects the national airline Air Baltic to go public. "I have called for the council responsible for financing airBaltic and overseeing the airline's operations to work more actively. That is why a new CEO has been appointed instead of Martin Gauss, and he has started working," Silina said in an interview. She expects that the search for additional opportunities will begin, as the government has delegated the task of finding solutions outside the IPO process — the public offering of capital. It should also be noted that airBaltic has acquired a new shareholder, Lufthansa, so the question of further options needs to be discussed with this enterprise as well.

When asked if airBaltic will go public, Silina did not provide a clear answer. "The government should have different proposals. I see that IPOs are periodically not fulfilled. I want to be better informed than I have been so far. Therefore, I urge the new council and board to think in advance about alternative options for attracting financing," the head of government said in the interview, adding that she wants to see several proposals on the 'table', various compromise options. "There will be a decision on the IPO, a decision with Lufthansa... there are many opportunities in the financial world," Silina expressed her vision.

She does not want to find herself in a situation where airBaltic takes on debt under unfavorable conditions again. The state, as a shareholder, is faced with the facts at the last moment when a decision needs to be made, Silina said. "I see that the current council is indeed honestly and openly informing the government about what the possible solutions are and which ones are not," the head of government said, listing that expenses have been reduced, and salaries for airBaltic management have also been lowered. Additional 'extras' have been reviewed.

It was previously reported that the international rating agency Fitch Ratings has downgraded the long-term issuer default rating (IDR) of the Latvian national airline airBaltic from 'B-' with a negative outlook to 'CCC+', according to a statement from Fitch.

Fitch also downgraded the rating of airBaltic's €380 million senior secured long-term bonds from 'B-' to 'B-'. The recovery rating is 'RR3'.