Latvia's airBaltic faces another investigation of its finances
Latvian national airline airBaltic is facing a new financial investigation requested by Prime Minister Andris Kulbergs. The company has reported significant losses and suspended IPO plans, raising concerns about its stability despite recent state loans and minority investment from Lufthansa.
Why it matters
The investigation creates uncertainty for potential foreign investors and highlights the ongoing fiscal challenges of state-backed national carriers in the European aviation market.
The LETA newswire learned that the investigation was initiated following a request from Prime Minister Andris Kulbergs (United List). The prosecutor's office also confirmed that it had received Kulbergs' request. This is not the first time that the prosecutor's office has assessed the national airline's finances. It did the same thing as recently as late 2024, when it found no irregularities in connection with the government's decision to support the reduction of airBaltic's share capital. However, news that the request for such a probe has come from the Prime Minister may not reassure the three potential foreign investors with whom he said he was negotiating earlier this week, with a view to them buying into the airline. Latvian airline airBaltic has faced financial difficulties in recent years, and rumours about a possible bankruptcy being aired periodically for years.
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