The former CEO if Latvia’s flag carrier airBaltic, Martin Gauss, was sacked on April 7, and he told the LETA news agency that he sees no job or business opportunities for himself in Latvia at this time.
If, however, Latvia grows faster than other European countries in future, there might be a “good idea,” Gauss declared.
Asked whether he would seek compensation for his dismissal, Gauss replied that contractual terms are confidential, so he could not comment.
He also said that he would keep a property that he owns in Jurmala and a shared property in Riga, as he had been living in the Latvian capital city for 14 years.
The former airBaltic CEO predicted that his dismissal will not help with airBaltic’s initial public offering (IPO), but he hopes that it will go ahead as planned.
As has been reported in the past, the supervisory board of airBaltic dismissed CEO Martin Gauss on Monday. The Transport Ministry told LETA that airBaltic executive board member and COO Pauls Calitis has been appointed as acting CEO for the airline. FGO Vitolds Jakovlevs remains a member of the airline’s executive board.
LETA also reports that the ministry, air Baltic and the Lufthansa Group have signed an agreement under which Lufthansa will invest EUR 14 million in airBaltic, receiving a minority stake in the airline and a seat on the supervisory board in return.
The Lufthansa Group will receive a convertible share granting a 10% stake, which will be issued at a subscription price of EUR 14 million and then converted into common shares upon the IPO of airBaltic. The size of the group’s stake will e determined by the market pricing of the potential IPO, but the Lufthansa Group will control no more than 5% of airBaltic.
Latvia’s government agreed last August that the state will retain at least 25% plus one share in the capital of airBaltic once the IPO is finished.
The acquisition of a convertible share which grants a 10% state in the airline to the Lufthansa Group from Germany for EUR 14 has been vetted by German’s Federal Cartel Office.
The Latvian state currently owns 97.97% of shares in airBaltic. The financial investor is Aircraft Leasing 1, which is owned by Danish businessman Lars Thuesen. It controls 2.03% of the company.
airBaltic had 5.2 million passengers in 2024, which was a 13% increase on the year. The number of flights rose 7% year-on-year to 47,000.
The airBaltic Group posted an audited loss of EUR 118. 159 million, as against a profit of EUR 747.527 million the year before. Its revenues increased by 11.9% year-on-year to EUR 747.572 million, according to information released by the company.
Source: BNS
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