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The Latvian government has approved a € 90 million cash injection for the state-owned airline airBaltic. The financial aid will help the carrier to offset pandemic woes.
Although the Council of Ministers of the Republic of Latvia has approved the package already, it remains subject to the European Commission’s approval.
The government expects airBaltic to return the investment from proceeds of share sale during a planned initial public offering. The exact date of returning the investment is not specified yet.
“The support of our majority shareholder to overcome the crisis reflects the recognition of the positive impact airBaltic has on the economy,” Martin Gauss, the Chief Executive Officer of airBaltic, commented on the government decision.
The Latvian government invested almost 250 million euros in airBaltic in May 2020, upping its airline share from 80% to 96.14%.