newstodate.aero
Feb 21, 2012 (newstodate): Doubts are being cast over the business model of the Latvian carrier airBaltic that has so far succeeded in establishing Riga Airport as a transfer hub in the Baltic region.
At least one airBaltic council member, Edmunds Krastins, formerly the country's finance minister, is now speaking out against this model in an interview with a Latvian media, airing needs for rethinking the future role of the carrier.
-(A) new strategy for airBaltic will be decided by choosing between the further development of the transit model which means that airBaltic will continue to operate with losses, or adopting the Estonian Air model, where flights to some dozen destinations will be offered from Riga, he said in the interview.
Behind the doubts are considerations of the carrier's financial situation that may be unable to sustain the high level of costs incurred by pursuing the existing strategy with its need for investments in a new aircraft fleet.
In the interview, Mr Krastins also says that the Latvian state may not sell its stake in the carrier - and that there may also not be any financial partner interested in buying airBaltic considering the limited size of the market.
airBaltic now serves more than 60 destinations connected via its transfer hub in Riga Airport.
At least one airBaltic council member, Edmunds Krastins, formerly the country's finance minister, is now speaking out against this model in an interview with a Latvian media, airing needs for rethinking the future role of the carrier.
-(A) new strategy for airBaltic will be decided by choosing between the further development of the transit model which means that airBaltic will continue to operate with losses, or adopting the Estonian Air model, where flights to some dozen destinations will be offered from Riga, he said in the interview.
Behind the doubts are considerations of the carrier's financial situation that may be unable to sustain the high level of costs incurred by pursuing the existing strategy with its need for investments in a new aircraft fleet.
In the interview, Mr Krastins also says that the Latvian state may not sell its stake in the carrier - and that there may also not be any financial partner interested in buying airBaltic considering the limited size of the market.
airBaltic now serves more than 60 destinations connected via its transfer hub in Riga Airport.