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Transport Ministry urges airBaltic to call shareholders' meeting immediately
Alla Petrova, BC, Riga, 22.06.2011.Print version


Latvian Transport Ministry believes that the board of the national airline airBaltic should immediately call a shareholders' meeting to ensure appointment of a new council and the company's successful development in the future, Nozare.lv was informed by the ministry's spokesman Aivis Freidenfelds.





The Cabinet and the Transport Ministry is currently working on the airline's development scenarios to ensure competitive development of aviation in the country, The private shareholder's council members' resignation could delay the assessment of the development plan at least a month and a half, emphasizes Freidenfelds.



The ministry stresses that, at the moment, the main task is to ensure that the company's audit is completed and the full information on the company's activities – available, writes LETA.



As reported, yesterday, Ilmars Razumovskis and Jean-Charles Korsak – representatives from the joint-stock company Baltijas aviacijas sistemas, which partially belongs to private shareholder and president of the national airline airBaltic – Bertolt Flick, decided to step down from the airBaltic’s council.



Freidenfelds told Nozare.lv that the ministry received an e-mail from the representatives, informing about the decision.



"The council's work is now basically paralyzed, therefore the state will call for the shareholders' meeting to confirm a new council," said Freidenfelds.














International Internet Magazine. Baltic States news & analytics Wednesday, 22.06.2011, 15:34

Kampars: airBaltic is close to bankruptcy
Alla Petrova, BC, Riga, 10.06.2011.Print version


National airline airBaltic operated with a loss of LVL 18 million in the first five months of 2011 and is close to bankruptcy, Economy Minister Artis Kampars (Unity) said in an interview with "Rietumu radio" this morning. The minister believes that the huge loss was created on purpose, to "pump out funds" from the company.





Kampars said that he had received alarming information. "Last year Latvian government invested more than LVL 15 million into the company to make sure that airBaltic can buy new planes on lease and continue development. airBaltic head and co-owner Bertolt Flick was showing the government his business plan that was promising a large profit this year and in 2012 – instead, the company is losing enormous money," said Kampars.

Kampars sees no reason for the losses. "Last year there was the Icelandic volcano, but there have been no volcano eruptions this year to hamper airlines' operations," said Kampars.



Kampars sharply criticized airBaltic management mode, where large part of processes that are important to airBaltic daily operations – financial management, service provision, fuel supplies – have been entrusted with companies that are directly connected with Flick's private company. On the other hand, the actual owners of his private company are unknown as they control it via offshore companies, writes LETA.



"This makes me think that what we are seeing is a premeditated attempt to pump out funds from the company," said Kampars.