Sluggish dismissed from the position of Chairman of the Board of airBaltic

Thus, from Monday, Pauls Calītis, the current board member and operational management director, will be part of AirBaltic’s temporary executive. Vitolds Jakovlev, a member and financial director of the Board, will also continue to work on the board of the company.

On Monday, during the shareholders’ meeting, airBaltic’s largest shareholder, SM, expressed distrust of the board chairman Gauss. Following the shareholders’ meeting, airBaltic convened an extraordinary council meeting. Given the distrust of the shareholder, the Council adopted a decision as Gauss, the former chairman of the board, starting Monday.

At the same time, the airline’s performance of 2024 was approved at the regular meeting of shareholders and the previously announced losses of EUR 118.159 million.

Minister of Transport Atis Švinka (P) points out that it is important for him to see the results because airBaltic is an important company for the country and must be able to develop independently and adapt to external circumstances.

Prime Minister Evika Siliņa (JV) joins the Minister of Transport. The Prime Minister points out that she expects an immediate vision of the MoU, or a letter of waiting to highlight the development directions of airBaltic, strengthening its role in Latvia and the Baltics.

« The priority of the government is and will be to preserve Latvia as the airline’s main headquarters, but to implement it through strict cost control, strengthening and moving to the IPO, attracting new investors, » Silina says.

Andrey Martinov, Chairman of the Council of airBaltic, expresses his gratitude to the sluggish for his leadership, return and vision since 2011, pointing out that for more than a decade, Gauss has led the company through significant changes and growth, creating a strong foundation for the future of the airline.

« At the same time, confidence in the airBaltic board and a professional team that ensures the business, passenger transport and operational management on a daily basis. The main objectives of business have not changed and airBaltic continues to work on the strategy to implement the initial public offer (IPO), » Martinov added.

Pauls Cālītis, Acting Executive Director of airBaltic, points out that airBaltic continues to operate with constant determination to achieve strategic goals and will not be affected by the company’s operational activity. He adds that the airBaltic team is strong and motivated and the airline is ready to ensure stability, continuity and development.

The MoU points out that Cālītis is an experienced aviation professional with a 30 -year career in airBaltic. Cālītis started his work in the airline in 1995 as a pilot and gradually took over leading positions, including oversight of airBaltic flight operations. In 2020, Cālītis took on the position of Director of Operational Management and became a member of the Board.

The ministry emphasizes that the company will not be affected. AirBaltic is and remains a strategically significant company for Latvia as the largest shareholder, which ensures state connectivity and direct contribution to the economy. The aim of the shareholders is to develop the company by strengthening its competitiveness, continuing to move to the IPO.

It has already been reported that at the end of January 2025, an agreement was reached with the German airline « Lufthansa » on investments in airBaltic in the amount of EUR 14 million. In exchange for investment in the Lufthansa Group will receive a convertible share, which will give it 10% participation. Later, after the potential airBaltic IPO, this convertible campaign will be converted to normal shares.

After the IPO Lufthansa Group participation, the potential IPO market price will be determined. The deal also stipulates that Lufthansa Group will be at least 5% of airBaltic’s capital after the potential IPO.

This transaction has yet to obtain permission from the German Federal Cartel Bureau (« Bundeskartellamt »).

Currently, the Latvian state owns 97.97% of airBaltic shares, while financial investor, Danish businessman Lars Nuten, owned by Aircraft Leasing 1 – 2.03%. On August 30, 2024, the Latvian government agreed that the country should retain at least 25% plus one campaign after airBaltic’s IPO.

AirBaltic carried a total of 5.2 million passengers in 2024, up 13% more than a year ago, with 47,000 flights, which is 7% more than a year ago.

In 2024, the airBaltic Group worked with audited losses of EUR 118,159 million, as opposed to profit a year earlier, while the Turnover of the Group increased by 11.9%compared to 2023, reaching EUR 747,572 million.