Commenting on the fact that on Monday, January 6, the parties forming the government of Latvia will consider the issue of the change of management of the airline “airBaltic”, Gauss stated that “the request for the dismissal of the CEO of an international airline due to the cancellation of flights shows that it is a politically driven action”.
Gauss emphasized that he has been an aviation industry professional for many years. “I can run an airline, but I can’t be involved in politics, and I won’t be involved in politics. However, of course I respect and honor the decisions that affect me,” Gauss said.
Gauss believes that after 13 years in office, building the largest airline in the region and also the airline with the most modern fleet, he has done a good job, while at the same time five airlines in the three Baltic states have gone bankrupt.
He emphasized that “airBaltic” plans to go to the stock exchange and attract private capital so that the state no longer has to invest.
Commenting on what Economy Minister Viktors Valaiins (ZZS) said that “airBaltic” needs a new management, Gauss said that he had spoken with the minister once in his life, and he was also informed that Valainis and ZZS have stated that they have lost trust in Gauss.
“If the government and the public want me to leave my post, it will happen. I am not a politician. I do not make decisions on this issue. I am doing my best to run this company professionally,” said Gauss.
Gauss explained that by making such a big noise in Latvia, the future development of “airBaltic” is also harmed.
Gauss added that currently the shareholders of “airBaltic” are the Latvian state and a minority shareholder, and there is also a council that evaluates whether he is doing his job right or wrong.
He said that a decision should be awaited from the coalition meeting, however, he assured that he has 34 years of experience in international aviation management and that he has been awarded internationally for his work.
Previously, Klāvs Vasks, chairman of the board of “airBaltic”, stated on the “LinkedIn” website that the current bond obligations and their interest rates are not sustainable for the long-term operation of “airBaltic”, therefore additional capital investment from the state is most likely inevitable.
Gauss explained that he thought Vasks was trying to convey that the airline is at a stage where the company is planning an IPO this year, so clear direction and oversight is needed.
“Only if this direction is not clear and the airline does not succeed in something, for example attracting private capital, then only it could turn to the shareholder. I think this is what Vaska’s statement was intended to do,” said Gauss.
He emphasized that the task of “airBaltic” is to create a budget and business plan and implement it without involving the government. “That’s my job and that’s what we’re trying to do,” Gauss added.
Gauss emphasized that plan “A” is to conduct an IPO this year and provide results, which means that “airBaltic” would not have to approach the government.
“If we can’t do an IPO this year, then we would push it to 2026 and then maybe do an IPO. And in the meantime, if the planning or the economy or other things don’t go right, we’ll do things like we’ve done for the last 13 years to would adapt. The shareholder will always be involved in this decision-making, and the shareholder will decide on this direction,” Gauss said.
The “Panorāma” program of Latvian Television (LTV) previously announced that the parties forming the government will decide on the change of management of the airline “airBaltic” on Monday.
On the other hand, the work of the board of the company is expected to be evaluated at the meeting of shareholders of “airBaltic” on January 21 this year, according to the statement of the Minister of Transport Kaspars Briškens (P) on social networks.
The minister emphasizes that “airBaltic” is a strategically important exporting company for the country, which makes a direct contribution not only to the aviation industry, but to the entire economy of Latvia. In order for the company to continue growing, its management has promised to attract 300 million euros of private capital for the implementation of the business plan.
“You have to keep your promises and if circumstances change, you should always have a clear plan B. We evaluate the work of the Council and especially its chairman Klāvas Vaskas by results, correct and timely communication and the ability to manage the company even in challenging times,” Briškens writes.
“airBaltic” started the year 2025 with the announcement that this year due to delays in engine maintenance carried out by their manufacturer “Pratt & Whitney”, the airline will stop flights on 19 routes and reduce the number of flight frequencies on 21 routes this year. A total of 4,670 flights will be cancelled.
“airBaltic” will cancel flights on 10 routes from Riga during the summer season – to Aberdeen, Belgrade, Cluj-Napoca, Yerevan, Gothenburg, Mykonos, Pristina, Rzeszów, Skopje and Stavanger. On the other hand, during the summer season, flights to Dubrovnik and Hamburg will be canceled from Tallinn, from Vilnius – to Dubrovnik, Ibis, Rhodes, Chisinau, Tel Aviv and Valencia, and from Tampere – to Rhodes.
After the airline’s announcement, Briškens announced on social networks that he was instructed to immediately explain to the board of “airBaltic” the validity of the flight cancellation decision and its impact on Latvia’s connectivity.
At the same time, Briškens expressed that the management of “airBaltic”, including Gaus and the chairman of the board Vaskas, have the obligation to realize their promises to attract capital in the amount of EUR 300 million for the implementation of the business plan, as well as to ensure that the operations of “airBaltic” correspond to the interests of the Latvian state and passengers.
It was also reported that on August 30, 2024, the government agreed in the closed part that the share capital of “airBaltic”, in preparation for the initial public offering (IPO), will be reduced by 571.293 million euros and the share structure of the existing company will be simplified, but according to “Firmas.lv ” no changes have been made to the data so far.
The regulations for the reduction of share capital state that the share capital of “airBaltic” will be reduced to 25.179 million euros.
It was also reported that the government of Latvia agreed in the closed part of the meeting on August 30 that the state should retain at least 25% plus one share in the company’s capital after the IPO of “airBaltic” shares.
Brišken previously explained that there are no negotiations with the strategic investor of “airBaltic” about the sale of a controlling stake, but about obtaining a minority stake before the IPO or on the way to the IPO, as well as possibly participating in the IPO.
Unofficial information shows that the German national airline “Lufthansa” could become the strategic investor of “airBaltic”, which would initially acquire approximately 10% of the shares.
Briskens has so far not officially disclosed whether the potential strategic investor is “Lufthansa”, as well as how many capital shares of “airBaltic” could be sold to the investor and for what amount. “The work continues. There must be a mutual agreement to disclose such information. By the time the transaction documents are concluded, both parties will immediately comment on it,” the minister said earlier.
At the same time, the minister previously emphasized that the responsibility for raising capital rests with airBaltic’s executive director and chairman of the board, Gausa, and airBaltic’s board chairman, Vaska. “The work of the company’s management will be evaluated according to the results achieved,” said the minister.
“airBaltic” transported a total of 4.536 million passengers in 2023, which is 35.7% more than in 2022, and made 44,100 flights, which is 18.3% more than the year before.
The audited turnover of “airBaltic” in 2023 amounted to 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, in contrast to losses the year before.
The Latvian state owns 97.97% of “airBaltic” shares, while “Aircraft Leasing 1” owned by financial investor, Danish businessman Lars Tūsen – 2.03%.
Source: www.diena.lv
