airBaltic has secured up to €250 million ($274 million) in funding from the Latvian government as it seeks to overcome the coronavirus pandemic.
airBaltic CEO Martin Gauss spoke of the funding that his company is receiving. He clarified that the money will help to facilitate successful growth for the company once the impact of the COVID-19 crisis begins to ease.
“With this new equity investment, we can begin to execute our new business plan Destination 2025 CLEAN, which focuses on a new start for airBaltic once international flights resume,” Gauss said.
If the European Commission approves the plan, the investment will be provided to the laitiva based airline in tranches. Each portion will be given in line with market rules and will not exceed the losses caused due to impact of coronavirus.
The new business plan as presented by the management of airBaltic, had already been approved by the Supervisory Board. This new plan takes into account the reduced capacity for the years 2020 and 2021, while at the same time foresees return to growth with up to 50 Airbus A220-300 aircraft by the end of 2023. The additional 30 options of Airbus A220-300 remain for future growth, the statement said.