Management to buy out SAS stake in Latvian airline

The management of the Latvian national airline, airBaltic, will buy out the 47.2-per-cent stake of the company currently owned by Scandinavian airline SAS, the companies said Thursday evening, dpa reported.

An official airBaltic source confirmed the news to Deutsche Presse-Agentur dpa after an SAS company statement said a deal had been reached.

SAS is selling its stake for 14 million lats (28 million dollars), which is less than many aviation industry experts had been predicting. The amount will be paid in cash by January 31. The source of funding being used by airBaltic's management has not been disclosed.

"The airline management, even in these difficult economic circumstances, believes in the company's prospects, so has decided to purchase the shares held by SAS," said airBaltic president and chief executive Bertolt Flick.

"We are very pleased that we have reached a solution for the company's ownership structure so we can continue and develop the company for the best of Baltic region. We are also happy to announce that airBaltic will continue its commercial cooperation with the SAS Group between Riga and Scandinavia," Flick added.

"This divestment is in line with our strategy not to maintain minority holdings in our airlines. We are pleased to have built airBaltic to a strong Baltic airline in SAS ownership and we are confident that the new owners will continue to develop the company in a positive direction", said Mats Jansson, SAS Group president and chief executive.

SAS announced that it would sell its minority stake in airBaltic on August 14 after the Latvian state, which owns 52.6 per cent of the company, refused to let SAS take a controlling interest in the company.

It is currently facing a similar situation with regard to another Baltic national carrier, Estonian Air, of which it also wants to take control instead of maintaining a minority stake.

Soon after SAS announced its intention to sell, Latvian Transport Minister Ainars Slesers said the government would "probably" buy SAS out, but that prospect disappeared as the Baltic nation's economy continued to nosedive.

The Latvian government is attempting to negotiate a loan with the International Monetary Fund (IMF) with a decision expected any day and has also embarked on a round of big spending cuts, making a complete nationalization of the airline financially and politcally untenable.

Weekly actual topics in Azerbaijan (April 16-20)
Weekly actual topics in Azerbaijan (April 16-20)
Weekly tenders in the region (April 16-20)
Weekly tenders in the region (April 16-20)
Last week’s laws, orders and decrees in Azerbaijan (April 16-20)
Last week’s laws, orders and decrees in Azerbaijan (April 16-20)
Loading Bars
Latest
Albanian ex-president: I call on int’l community to engage with greater serosity in full resolution of Karabakh conflict
Armenian side continues to shell Fuzuli, Tartar districts
Azerbaijan discloses Armenia’s military equipment taken out Sept. 30 (VIDEO)
Zakharova: Int’l community expresses single opinion related to Karabakh conflict settlement
Al Jazeera prepares report on lasting effects of Karabakh conflict to IDPs (VIDEO)
Armenian armed forces shell settlements of Azerbaijan's Fuzuli district (PHOTO)
'Everything has a limit': Georgian expert talks Azerbaijan fighting for liberation of its lands
Ministry: Info on Azerbaijan’s use of Turkish fighters against Armenians - lies
Solemn ceremony of signing number of important documents between Turkmenistan and Afghanistan takes place in Kabul (PHOTO)
London-based media platform publishes article on developments within Karabakh conflict
Georgia ready to host representatives of Armenia and Azerbaijan in Tbilisi
Azerbaijan fighting againt mercenaries from Middle East on its occupied lands
Erdogan makes proposals to Putin on Karabakh conflict settlement - ministry
Uzbek Artel Avesto Electronics enters Tajik market
Iranian university rector: talks - senseless until occupiers leave Azerbaijan
Uzbekistan and Tajikistan strengthen economy co-op
Azerbaijan gives update on destroyed weaponry of Armenian armed forces (VIDEO)
Uzbekistan to increase excise tax on tobacco products
Azerbaijani State Security Service's veteran: Latest provocations of Armenia were evidence of its preps for war
Azerbaijan denies Armenia's info on Turkey taking part in Karabakh battles
Azerbaijani Defense Ministry: Armenian Armed Forces continue intensive shelling of civilian infrastructure
Georgia to announces tender for construction of cable car
Turkmenistan increases import of clothes from Turkey
Turkey's export of grain, legumes to France declines
Armenian armed forces use Tochka-U tactical missile system during battles
Activity of Iran’s Astara ports revealed
Bank of Georgia implements new agricultural project
Cargo shipment data via Turkey's Botas port disclosed
India eyeing import of Kazakh-produced natural uranium
IGB updates on line pipe manufacturing, supply status
Cargo shipment data via Turkish Gemlik port revealed
Bank of Georgia offers new project for SMEs
Number of foreigners applying to work remotely from Georgia increases
Kazakh oilfield construction company opens tender to buy pipes
Kazakhstan’s Intergas Central Asia opens tender for equipment modernization
Turkey's foreign trade turnover declines
Turkmenistan, Belarus consider ways to increase trade turnover in context of COVID-19
Volume of goods shipped across Turkish Canakkale port revealed
Azerbaijani Prosecutor General’s Office: 14 civilians killed, 46 injured as result of Armenian provocation
Iran's ex-ambassador: End must be put to occupation of Azerbaijani territories
Iran's oil minister talks progress of work on Phase #14 of South Pars field
Azerbaijan confirms 127 more COVID-19 recoveries
Kyrgyzstan boosts car import from Turkey
Financial system of Georgia prepared to meet shock of COVID-19 pandemic
Data on cargo shipment via Turkey's Dikili port announced
Iran’s Bahar Azadi gold coin price reaches record levels
Turkey discloses goods shipment indicators via its Cesme port
Iran's Shazand Oil Refining Company opens tender to buy spare parts
Turkey sees decline in car export to US
Demand for Turkish clothes in French market down
Iran to launch container shipping on Caspian Sea between neighboring ports
COVID-19 forces down Iran's exports to Kuwait
ElectroGas Malta reveals volume of LNG purchases from SOCAR
Turkmenistan raises import of grain, legumes from Turkey
Iran preparing document on transformation of agriculture sector
Individuals deposits value increases in Kazakhstan year-on-year
Number of potential projects between UK, Turkmenistan being discussed
EBRD funds Uzbek small and medium-sized enterprises
Turkey's export of grain, legumes to Iran more than halves
Turkey's export of leather goods to Iran slumps
Turkmenistan lowers import of Turkish-made leather goods
Overground metro in Uzbekistan’s Tashkent to bring positive environmental impact
Georgian expert: Armenia must leave Nagorno-Karabakh - this is historical land of Azerbaijan
Bulgarian ex-president: Only solution to Karabakh conflict is peaceful negotiations with immediate effect
Turkey unveils cargo handling figures via its ports from Belgium
French President intending to discuss Nagorno Karabakh tension with Russian, US counterparts
Data on shipment of goods across Turkish Antalya port published
Azerbaijani Foreign Ministry comments on decision of European Court on Human Rights related to ongoing clashes in Nagorno Karabakh
Azerbaijani army destroys two more Armenian tanks (VIDEO)
Foreign exchange interventions in Georgia to continue in first half of 2021
French Earthquake Engineering Association to co-op with Kazakh Institute on new technologies application
Azerbaijan Defense Ministry: Armenian troops' headquarters in Aghdara hit
Russia's import of Turkish leather goods plunges
Armenian battalion suffers heavy losses from Azerbaijan's heavy artillery fire - ministry
Iran grows import of electrical goods from Turkey
Iran boosts its exports via South Khorasan Province
Death toll from COVID-19 exceeds 26,000 in Iran
EBRD strengthening small, medium-sized enterprises in Turkmenistan
Turkish Energy Ministry bans local company from participating in TPAO's tenders
France increases cement import from Turkey
Azerbaijani army destroys Armenian armed forces’ reserve forces (VIDEO)
Volume of goods shipment via Turkish Bandirma port announced
Deputy chairman of Azerbaijani Parliament: Main target of Armenia killing is civilian population of Azerbaijan (PHOTO)
President Ilham Aliyev: We did not have and do not have any military targets on territory of Armenia
Movement of cargos up through Iran's Shahid Bahonar port
Turkey reveals data on cargo movement via its Ambarli port
Cargo shipment through Turkey’s Bartin port disclosed
Cargo shipment data through Turkey’s Aliaga Port unveiled
Azerbaijani State Service for Mobilization and Conscription sends hundreds of young volunteers to front (PHOTO)
Azerbaijan has right to self-defense, says ambassador
Number of transactions via debit cards in Azerbaijan increases
Azerbaijani president, first lady meet with wounded servicemen undergoing treatment at Central Military Clinical Hospital of Defense Ministry (PHOTO)
Azerbaijani president: Azerbaijan provided financial and humanitarian assistance to nearly 120 countries during last 15 years
Tural Ganjaliyev: Armenians living in Karabakh must support Azerbaijani army, Azerbaijani state (VIDEO)
President Ilham Aliyev: Azerbaijan places special emphasis on equal distribution of energy revenues between current and future generations
President Ilham Aliyev: Azerbaijan attaches great importance to the implementation of the Sustainable Development Goals
Azerbaijani president: We able to stand up for ourselves, punish aggressor so that he doesn’t venture even to look in our direction
President Ilham Aliyev: Azerbaijan one of few states to submit voluntary national reviews to UN twice
Volume of cargo loaded, unloaded at Iran’s Noshahr port revealed
Norway reaches fisheries agreement with UK ahead of Brexit
All news