newstodate.aero
Feb 23, 2010 (newstodate): The Latvian carrier airBaltic will need to expand its capital basis to support its ambitious plans for expansion and new projects.
By the end of 2008 SAS sold its 47.2 percent of the shares in the Baltic carrier to Bertolt Flick, airBaltic President and CEO, through a management buy-out, while the Latvian state retained its stake.
-The current registered capital is today only one million USD, which is highly insufficient to support us, says Mr Flick.
-We are facing the introduction of eight new Dash 8 aircraft, we need soon to replace our fleet of Boeing 737 Classic aircraft with either Boeing 737 NG or Airbus A320 Family aircraft, and we are involving ourselves in the construction of a new passenger terminal at Riga Airport, urgently needed to cope with increasing passenger volumes.
-The Dash 8 aircraft will require the investment of some 200 mio USD at list prices, the Boeing 747 fleet renewal will require another one bio USD, and the new terminal will cost around 100 mio euro. All this must be financed in today's volatile European investment market.
-While both the state and I agree that we will maintain the current ownership proportions and not expand the circle of owners, both parties also agree that we will have to raise the level of registered capital by injecting more money into the airline.
In an interview with newstodate in April, 2009, Mr Flick noted that the state was perhaps not the ideal partner:
-The state is not an easy partner, and I hope it will soon be willing to dilute its shares. But it is neither willing to sell, nor willing to take risks, he said then.
Today, Mr Flick has moderated his views:
-The state is perhaps not a dynamic partner, but it has a long-term interest in the airline, and thus provides stability. In any case, it would be difficult to find a substitute in today's financial environment, says Mr Flick.
By the end of 2008 SAS sold its 47.2 percent of the shares in the Baltic carrier to Bertolt Flick, airBaltic President and CEO, through a management buy-out, while the Latvian state retained its stake.
-The current registered capital is today only one million USD, which is highly insufficient to support us, says Mr Flick.
-We are facing the introduction of eight new Dash 8 aircraft, we need soon to replace our fleet of Boeing 737 Classic aircraft with either Boeing 737 NG or Airbus A320 Family aircraft, and we are involving ourselves in the construction of a new passenger terminal at Riga Airport, urgently needed to cope with increasing passenger volumes.
-The Dash 8 aircraft will require the investment of some 200 mio USD at list prices, the Boeing 747 fleet renewal will require another one bio USD, and the new terminal will cost around 100 mio euro. All this must be financed in today's volatile European investment market.
-While both the state and I agree that we will maintain the current ownership proportions and not expand the circle of owners, both parties also agree that we will have to raise the level of registered capital by injecting more money into the airline.
In an interview with newstodate in April, 2009, Mr Flick noted that the state was perhaps not the ideal partner:
-The state is not an easy partner, and I hope it will soon be willing to dilute its shares. But it is neither willing to sell, nor willing to take risks, he said then.
Today, Mr Flick has moderated his views:
-The state is perhaps not a dynamic partner, but it has a long-term interest in the airline, and thus provides stability. In any case, it would be difficult to find a substitute in today's financial environment, says Mr Flick.