newstodate.aero
Aug 24, 2011 (newstodate): Politics and airline business is usually a dangerous blend, and Latvia is continuously adding evidence to this truth.
The Latvian carrier airBaltic has long been a battle ground for politicians, and in the meantime the carrier is paralyzed in its efforts to cope with debts and its growing needs for financing of its urgent fleet modernization and expansion.
In its latest move, the Latvian government holding 52.6 percent of the shares has pledged to cooperate in footing the airline's debts on the harsh condition of a reshuffling of the management as well as requiring a rewriting of the airline's shareholder agreement to grant the state more control over the carrier.
If these conditions are not met, the state will not assist the carrier in its current financial crisis.
The remaining stakes are held by Baltijas Aviacijas Sistemas, owned 50 percent by the airline's president and CEO, Bertolt Flick and 50 percent by the Bahamas-registered investment fund Taurus Asset Management Fund Limited.
The Latvian carrier airBaltic has long been a battle ground for politicians, and in the meantime the carrier is paralyzed in its efforts to cope with debts and its growing needs for financing of its urgent fleet modernization and expansion.
In its latest move, the Latvian government holding 52.6 percent of the shares has pledged to cooperate in footing the airline's debts on the harsh condition of a reshuffling of the management as well as requiring a rewriting of the airline's shareholder agreement to grant the state more control over the carrier.
If these conditions are not met, the state will not assist the carrier in its current financial crisis.
The remaining stakes are held by Baltijas Aviacijas Sistemas, owned 50 percent by the airline's president and CEO, Bertolt Flick and 50 percent by the Bahamas-registered investment fund Taurus Asset Management Fund Limited.