Transport Minister Tālis Linkaits (New Conservative Party) hopes that an initial public offering of shares in airBaltic will take place by 2023-2024, the Minister said in an interview to Latvian Radio on June 17.
According to him, the listing of the airline’s shares at the time could be initiated on condition that the situation in the aviation sector is “positive” and airBaltic will be able to demonstrate to both the bondholders and other interests that the company is successful, the business plan is being met.
“The optimistic scenario is that recovery [from the Covid-19 crisis] will occur in a couple of years. We assume that 2023, 2024 could be the years when airBaltic’s economic activity, business plan execution, business model could be attractive to investors, if, of course, there are no significant fluctuations in the market or something that we cannot predict now, “Linkaits explained.
Speaking about the state’s planned investment in the airline’s core capital of up to €250 million, Linkaits said a European Commission (EC) agreement is currently pending.
The planning of airBaltic’s business plan, the extent of this year’s losses due to the crisis caused by Covid-19, and the financing needed to ensure the company’s operation in the following year have been taken into account in the planning of the aid needed for the airline.