Reuters
• Andrius Sytas, Gianluca Lo Nostro
Latvia’s national airline airBaltic has voluntarily filed for Chapter 11 protection in New York while maintaining normal flight operations. The carrier is seeking debtor-in-possession financing of up to €350 million, days after pursuing a €257 million emergency package carrying a 25% interest rate.
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Ryanair has proposed a five-year, $1.6 billion investment across Estonia, Latvia and Lithuania, including additional aircraft and routes. The plan comes as airBaltic pursues creditor protection, positioning Ryanair to capitalize on weakness at the Baltic region’s established network carrier.
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The US Bankruptcy Court for the Southern District of New York has approved airBaltic’s first-day Chapter 11 relief requests, including access to $162 million in financing. The orders allow Latvia’s flag carrier to continue normal operations while pursuing a court-supervised restructuring backed by an investor pool.
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Latvia’s national airline airBaltic has voluntarily filed for Chapter 11 protection in New York while maintaining normal flight operations. The carrier is seeking debtor-in-possession financing of up to €350 million, days after pursuing a €257 million emergency package carrying a 25% interest rate.
Latvian carrier airBaltic is seeking approval for up to €257 million ($300 million) in emergency financing at a 25% annual interest rate. The funding is intended to provide liquidity while the airline undertakes a major operational restructuring.
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Latvian carrier airBaltic has agreed terms with certain existing bondholders and third-party finance providers for up to €257 million ($299 million) in interim financing. The funding is intended to strengthen liquidity and support the airline’s restructuring program, including its fleet-reduction strategy, as it works to avoid a potential 2026 default.
Loss-making airBaltic is reducing its summer 2027 schedule and withdrawing destinations from its core Riga, Tallinn and Vilnius network. The Latvian operator says the changes follow a revised long-term business plan focused on its strongest markets and intended to stabilize its financial position.
Latvia’s government has extended the deadline for airBaltic to repay a state loan, giving the airline additional time to meet its financing obligations. The decision keeps the carrier’s government-backed funding and financial position in focus as Latvia weighs airBaltic’s future strategy.
Prime Minister Andris Kulbergs criticized the financial burden of airBaltic during a parliamentary session on legislation approving urgent interim funding. His comments come as lawmakers consider the state’s role in supporting the airline while debating whether continued government involvement is appropriate.
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