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An executive from airBaltic has revealed that discussions with a strategic investor have encountered difficulties. These talks were expected to validate the airline's business model and facilitate its initial public offering (IPO). Klavs Vasks, chairman of the supervisory board at airBaltic, expressed concern over the airline being at a significant crossroads regarding its future.
In a LinkedIn post, Vasks highlighted that while Latvian Minister of Transport Kaspars Briškens has repeatedly stated that raising capital is the responsibility of Vasks and CEO Martin Gauss, shareholder support remains crucial for enabling an IPO. AirBaltic is primarily owned by the Republic of Latvia and Aircraft Leasing 1. "The first steps towards the capital markets have been associated with significant challenges," said Vasks. He noted negotiations with a strategic investor had not progressed as smoothly as hoped.
Though no specific investor was named, previous reports suggested Lufthansa Group might be interested in acquiring a 10% stake in airBaltic. Vasks also pointed out political challenges affecting the carrier's plans and emphasized that local politicians need to make bold decisions if airBaltic aims to proceed with an IPO.
