airBaltic will be placed under increased control. What does this mean in practice? Three conclusions 0 71

So, after a three-hour closed government meeting on the situation at airBaltic, scant information emerged that regardless of whether the airline will receive a loan, its activities will be placed under increased supervision. How will this supervision manifest itself?

First - the special interagency group for the supervision of airBaltic, created at the end of last year, is expected to meet not once every two to three months, but twice a month to discuss the current financial (and not only) situation at airBaltic.

Second - apparently, the holder of state capital in airBaltic - the state secretary of the Ministry of Communications will regularly convene meetings of the national situation council to discuss the current state of affairs. It cannot be ruled out that at some point the Ministry of Communications will also oversee all of the airline's payments related to administrative expenses and the use of the loan, if it is ultimately issued.

Third - according to the government's decision, the Ministry of Communications, if the cost of aviation fuel exceeds a critical threshold, will initiate a question in the Cabinet regarding declaring a state of emergency in the aviation sector. Under this "pretext," the government will again be able to allocate funds to the airline - for example, a crisis loan from the State Treasury.

Meanwhile, there is a high probability that this week the Saeima's budget commission will approve a short-term loan for airBaltic. Rumor has it that tomorrow, Minister of Communications Aitis Švinkas will provide the "green farmers" with all the requested information and will take political responsibility for the loan repayment.