Latvian airline airBaltic is a key part of the Latvian economy according to Martin Gauss, the Chief Executive Officer of the airline, who said: "Over the last 25 years airBaltic has developed as a strong, profitable and internationally respected airline. airBaltic is by far the best-known international brand of Latvia and responsible for more than 2.5% of the Latvian GDP. airBaltic is a valuable asset to Latvia and we need to use it and grow it."
What are benefits of national carrier?
Connectivity: 70+ direct flights, comfortable schedule, wide choice of transfer flights in partnership with other airlines.Support: Bring home stranded nationals and provide mail&cargo service to the country (7500+ repatriated nationals in 2020, special cargo flights to China bringing lifesaving supplies).Strong export brand: 50+ export markets, the leading airline of Baltics, creating new business ties and promoting Latvia globally.Education: Locally developed aviation programs (pilots, cabin crew, technicians, self-development opportunities for motivated individuals).
Today, one year after Covid-19 was first confirmed in Latvia, the whole world has learned about the reality of what that virus means for aviation. The impact to the aviation industry is beyond any imagination of what could have happened. All European states know that and are supporting their carriers with billions of euros to ensure air connectivity during the crisis and once the crisis is over.
Why airBaltic was supported in 2020?
Government provided aid to all industries heavily affected by the crisis, and aviation could not be an exception.With the planned IPO, the investment will be returned to the Latvian state in the form of sale of shares.airBaltic is strategically important for the Latvian economy, with a clear business development plan based on the growth at Riga airport.One Airbus A220 aircraft can generate around 20-million-euro revenue per year if utilized efficiently – meaning airBaltic in 2025 could produce revenue close to 1 billion euros, following the destination 2025 clean business plan.Covid-19 brought a 73% decline in passenger volumes due to travel restrictions.
Every crisis has an end, and with that in mind we at airBaltic are maintaining our operations and even investing in the future by taking in more Airbus A220-300 aircraft this year. By the end of 2021 we will have 32 Airbus aircraft and with that we will offer 75 destinations from Riga, Tallinn and Vilnius in the summer months. Bringing in foreign tourists will generate thousands of jobs in aviation industry and hospitality field in Latvia.
How does airBaltic help Latvia prosper?
Contributing to over 2.5% of GDP of Latvia, with more than 210 million euros paid in taxes over five years.Aviation industry indirectly provides close to 30 000 jobs.Millions of people transfer through Riga airport, while many more arrive to Latvia.Each year foreign tourists spend more than 750 million euros in Latvia.
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