airBaltic Secures €30 Million State Loan

Latvian Prime Minister Evika Siliņa said she is prepared to risk the collapse of her governing coalition to secure financial support for the national carrier airBaltic. Her comments came as the Saeima prepared to vote on a proposed 30-million-euro short-term loan for the airline. On April 15, Siliņa posted on the social media platform X that ensuring the loan for airBaltic was more essential than maintaining the government coalition. She stated that if providing support to the airline required sacrificing the coalition, she was ready to do so. The government had previously approved the loan conceptually, but final authorization required a vote in parliament. The Union of Greens and Farmers, a coalition partner, had not given its final approval and demanded the resignation of Transport Minister Atis Švinka before supporting the measure. Despite the disagreement, Siliņa invited all coalition parties to a meeting on the morning of April 16, ahead of the upcoming Saeima session. A planned meeting between the Union of Greens and Farmers and the Progressives on April 15 to discuss the loan did not take place due to scheduling conflicts. On April 16, the Latvian parliament approved the EUR30 million (USD35.3 million) short-term loan to airBaltic by a vote of 49 to 23. Most deputies from the three coalition parties supported the measure. Opposition lawmakers criticized the loan for lacking clear conditions and questioned whether it would be sufficient, urging the airline to present a restructuring plan. Transport Minister Švinka said he would assume personal responsibility for ensuring the airline repays the funds. The loan was described by the government as a necessary liquidity boost amid current market challenges. The development underscores the political stakes involved in stabilizing Latvia’s national airline, which operates 55 aircraft serving 90 destinations across 144 routes with an average of 151 daily flights.