jobi

Hey, at least you'll earn EB points

SPBanker

I guess airBaltic's problems just continue. Some 200 will be sacked.

http://www.baltictimes.com/news/articles/29400/

"RIGA -- The Latvian government has announced that it will provide emergency funds to ailing national airline airBaltic, but only on the condition that there is a change in the company's management.

Prime Minister Valdis Dombrovskis told Latvian Radio that the government had "agreed to participate in ensuring the company’s operation,” but only on the resignation of Chief Executive Officer Bertolt Flick.

AirBaltic is majority owned by the state with a 52.6 percent share, while Flick's company Baltic Aviation Systems has a 47.2 percent share. Dombrovskis said the government would consider both a joint injection with BAS or outright buying the smaller shareholder's stake in the company.

The airBaltic board has requested a cash injection of around 60 million lati, following losses of around 30 million lati last year despite a growth in traffic.

The airline’s offices were raided in May amid a criminal probe by the country’s anti-corruption bureau. Flick's name has been repeatedly mentioned in the investigation."

http://www.baltic-course.com/eng/transport/?doc=44881

The president of Latvian national airline airBaltic and minority shareholder, Bertolt Flick, will not "cling to his seat" if it is the main precondition for further actions, the LNT television channel reported yesterday.

At the same time, Flick emphasized that he will strictly oppose any changes in airBaltic shareholders' agreement that would grant the state rights to influence the airline's management, writes LETA.

"The airline's management must consist of professionals. airBaltic is still alive and continues to operate. The airline grew because it employed professionals and not people appointed by politicians. There cannot be any political compromises when we talk about the safety of airBaltic flights. There are things that can be discussed and things that cannot, said Flick and emphasized that the state's participation in the airline's share capital increase "is not the best option."

As reported, yesterday, the government decided to help bail out airBaltic, stipulating the change of company's management as one of the main conditions, Transport Minister Uldis Augulis (Greens/Farmers Union) said after the government's session yesterday.

Consultant firm Prudentia has two weeks to evaluate how the state could participate in the further development of the company.

TTL

Poor Flick! Poor AirBaltic!

It was nice to have your around for a while it lasted. R.I.P.

Shame on you Latvian government clowns!

Welcome OV and BE!

another_shot

Maybe it is a time for Flick to stand down. He MUST be credited for his vision, action and courage which turned miserable RIX-CPH shuttle operation into a reasonably big regional airline. He was able to develope the network, brand and fleet but failed to turn it into profit. Let's someone else try it but not a politically appointed chap...

tiltslope

But even for the potential new one the task is classical - how to raise fares and not to lose customers...

Richey66

LOL - doesnt take big genius to create "reasonably big regional airline", when you're allowed to go into 100 million EUR red with it and create tens of routes which never made any profit.

another_shot

Airline business is one of those where you can make a huge loss in a matter of month (ask SAS!). BT losses seem to be high but if you consider overall figures and compare to some other airlines it is not that dramatic. Last time I took a look, BT accumulated loss over last 5 years was something like 7-8% (negative) margin. As a comparision, OV accumulated loss was around 6.5% (negative) margin for the same period. The only difference OV is still a miserable TLL-CPH shuttle while BT was expanding like hell.

For me as a passenger airline which is trying new routes, even some/many of them not successfully, is way better than airline stuck in what it was 15 years ago. Let's see whether Taskila will take OV to the new levels but no doubt this will be though a heavier losses than ever.

Mr.Niels

http://bbn.ee/article/2011/9/13/brea...ancels-flights

SPBanker

And more...

http://bbn.ee/article/2011/9/16/airb...assive-layoffs

airBaltic starts massive layoffs
16.09.2011, 10:33
Latvian airline airBaltic has announced that it will be cutting job. According to Latvian aviation trade unions, the company could lay 500 people or half its workforce, mainly flight attendants.

Officially the airline says that job cuts are necessary because the airline is abandoning Fokker-50 aircraft and is reducing the number of flights.

In Estonia the airline has aready applied to the Estonian unemployment insurance fund for redundancy compensation. The fund has not specified how many people the airline was laying off in Estonia.

According to trade unions, the airline has offered the employees that if agree to end their employment voluntarily they would receive two-month wages in compensation.

airBaltic employs over a thousand of people in total. Nearly 400 of them are fight attendants.

dabee69

I just flew RIX-SVO in C. BT soft product from one of the best in now one of the poorest. Now it's much worse than SU. No more wet towels, newspapers, hot food. Flight attendants are still nice, smiling and willing to help but that's about all what's left.

Cold food was also terrible - they called it a ceasar salad and it came with fat bacon...

This comes together with termination of corporate contracts and significant price increase. BT may follow Malev's route with ex-Malev CEO.

Good that we have competition again - OV (EB points!!! ), TK, LO, LH, etc. LH and SU have already launched additional flights to/from Riga.

tiltslope

New, improved, better prices?
http://www.airbaltic.com/public/49721.html

tsastor

To be honest, I'm not flying airBaltic very much anymore privately either. I hate it when trying to book a restricted fare (that is not even cheap by any means) the price goes up with a further 33% when reaching the final booking screen.

dabee69

Yeah. No discounts on cheapest prices, other fares get 8-20% discount. Significant increase of business fares. No more competitive last minute corporate business fares.