Latvia’s Saeima has approved urgent legislation to support airBaltic’s financial stabilisation, clearing the way for state participation in interim financing, the capitalisation of existing claims and an extension of a previous government loan. The move keeps the carrier funded while its restructuring continues, with the airline’s liquidity plan centred on EUR 225 million in temporary financing.
The law allows the government to buy up to EUR 30 million in additional interim-financing bonds on the same terms as private investors and to convert up to EUR 50 million of state-held bonds into equity. It also extends repayment of a EUR 30 million state loan from 31 August to 31 December 2026. airBaltic’s board has already approved a business plan built around the interim funding package, making the parliamentary vote a key step in securing short-term cash flow.
Prime Minister Andris Kulbergs has argued that the state should not ideally own an airline, while describing the current intervention as airBaltic’s last chance. He tied further support to private creditor participation, underscoring the government’s view that public money should not be the sole source of financing. The debate now centres on the airline’s ownership structure as much as on the immediate rescue package.