newstodate.aero
Oct 08, 2015 (newstodate): The Latvian carrier airBaltic has pinned its future development on the acquisition of Bombardier CS300 aircraft.
Repeatedly delayed, the delivery of the first new aircraft is now slated for September 2016, with the order comprising 13 aircraft with options for a further seven aircraft.
But in the meantime uncertainty shrouds both the CS300 program and airBaltic's eventual financing of the new fleet.
Bombardier has amassed an insurmountable pile of debts and the CS300 program is years overdue and billions of dollars over budget, forcing the company to seek new ways to sustain the continued development and production.
As one recent effort, Bombardier turned to Airbus with a proposal to cooperate on the CS program, but the overture was rejected and Bombardier is now forced to seek other investors including potential partners in China.
At the same time airBaltic is struggling to achieve success in its year-long quest for a new investor to inject fresh capital into the carrier that is now fully owned by the Latvian state that will be unable to support the airline further after having only recently been cleared by the EU Commission of allegations of illegal state aid during the previous years.
airBaltic's project was seemingly close to success with a named party when its consultant in the process broke the silence and disclosed business secrets, leading the Latvian state to end the cooperation and seek a fresh start, the outcome and direction of which remains unknown.
Repeated efforts by newstodate to seek comments from either airBaltic or Latvia's Ministry of Transport on the issues remain unsuccessful.
With a new partner to realize the CS project, Bombardier will remain in dire straits, and without a new owner, or partner, to infuse fresh capital into the carrier, airBaltic will also face a difficult future fulfilling the obligations from the significant aircraft acquisition program.
Repeatedly delayed, the delivery of the first new aircraft is now slated for September 2016, with the order comprising 13 aircraft with options for a further seven aircraft.
But in the meantime uncertainty shrouds both the CS300 program and airBaltic's eventual financing of the new fleet.
Bombardier has amassed an insurmountable pile of debts and the CS300 program is years overdue and billions of dollars over budget, forcing the company to seek new ways to sustain the continued development and production.
As one recent effort, Bombardier turned to Airbus with a proposal to cooperate on the CS program, but the overture was rejected and Bombardier is now forced to seek other investors including potential partners in China.
At the same time airBaltic is struggling to achieve success in its year-long quest for a new investor to inject fresh capital into the carrier that is now fully owned by the Latvian state that will be unable to support the airline further after having only recently been cleared by the EU Commission of allegations of illegal state aid during the previous years.
airBaltic's project was seemingly close to success with a named party when its consultant in the process broke the silence and disclosed business secrets, leading the Latvian state to end the cooperation and seek a fresh start, the outcome and direction of which remains unknown.
Repeated efforts by newstodate to seek comments from either airBaltic or Latvia's Ministry of Transport on the issues remain unsuccessful.
With a new partner to realize the CS project, Bombardier will remain in dire straits, and without a new owner, or partner, to infuse fresh capital into the carrier, airBaltic will also face a difficult future fulfilling the obligations from the significant aircraft acquisition program.