newstodate.aero

Jan 29, 2024 (newstodate): Visions of a "Pan-Baltic airline" have been in the air for more than two decades - and are now resurfacing in a new guise.
   The plans to float airBaltic through an IPO expectedly by the end of this year have opened new opportunities for Estonia and Lithuania to gain a stake in the Latvian carrier that has successfully spread into the Baltic markets, and rendered hopes or plans for setting up new national carriers to serve Estonia and Lithuania increasingly void.
   Opinions are, however, divided among the various stakeholders in the Baltic markets.
   In Lithuania, Transport Minister Marius Skuodis told the country's media earlier this month that he already had had two conversations with the Latvian Transport Minister about the possibility of Lithuania acquiring a stake in airBaltic.
   His approach is however not supported by another key figure in Lithuania's civil aviation industry, Orijana Masale, Cavia Chairman of the Board, in an interview with Verslo Zinios.
   -Cavia sees four essential risks in Lithuania's potential partnering in airBaltic:
   -First, the financial situation of Air Baltic, where the company's debt to the Latvian government alone amounts to about EUR 400 million.
   -The second risk is that the aviation business is expensive and rarely profitable. Often, national carriers cost states hundreds of millions of euros a year. It is doubtful whether Lithuania, as a state, especially in the context of national security threats, can afford to invest at least several tens of millions of euros in airlines every year.  
   -In addition, the development of infrastructure for the development of Lithuania's aviation industry will also require significant investments.
   -It is also doubtful that, after Lithuania became a small shareholder of the airline, Vilnius will become the base of the company – this position will undoubtedly continue to be occupied by Riga.
    In Lithuania, airBaltic opened its base at Vilnius in November 2014, benefiting from the final collapse of Lithuania's latest attempt to establish a national carrier, Air Lituanica that finally folded its wings on May 22, 2015, leaving a void in the provision of Lithuania's air connectivity.