newstodate.aero
Nov 28, 2014 (newstodate): With all issues with EU cleared after the recent probe over the legality of Latvian state aid to airBaltic, the carrier is flying in warmer tailwinds.
-The EU probe has confirmed that the state loans provided to support airBaltic's restructuring plan were indeed legal as reality has proved that airBaltic has performed even better than budgeted and is now already showing operational profits boding well for a first year with figures all in black, says Martin Gauss, airBaltic President and CEO.
-This is despite a drop in passenger volumes, but compensated for by a significant reduction of costs proving the efficiency of our restructuring plan.
-There is still, however, a negative equity in the company but with sustained efforts to manage the situation this will also be overcome within only few years.
-All this indicates that there is now a favorable window of opportunity for a new investor to step in, relieving the state of its current majority ownership. As the negative equity is soon eliminated, the value of a bargain will rise correspondingly meaning that from now an acquisition of the carrier will carry an increasing price tag.
-Negotiations with potential partners belong with the shareholders and the airline's board, thus outside my office. But it is probably no secret that the interest in airBaltic from strategic partners and investors is certainly increasing, says Mr Gauss.
-The EU probe has confirmed that the state loans provided to support airBaltic's restructuring plan were indeed legal as reality has proved that airBaltic has performed even better than budgeted and is now already showing operational profits boding well for a first year with figures all in black, says Martin Gauss, airBaltic President and CEO.
-This is despite a drop in passenger volumes, but compensated for by a significant reduction of costs proving the efficiency of our restructuring plan.
-There is still, however, a negative equity in the company but with sustained efforts to manage the situation this will also be overcome within only few years.
-All this indicates that there is now a favorable window of opportunity for a new investor to step in, relieving the state of its current majority ownership. As the negative equity is soon eliminated, the value of a bargain will rise correspondingly meaning that from now an acquisition of the carrier will carry an increasing price tag.
-Negotiations with potential partners belong with the shareholders and the airline's board, thus outside my office. But it is probably no secret that the interest in airBaltic from strategic partners and investors is certainly increasing, says Mr Gauss.