riga, Latvia – A notable reshuffling is underway in European aviation leadership, as former airBaltic CEO martins Gauss transitions to lead Gulf Air, Bahrain’s national carrier, effective November 4, 2025. Gauss’s departure from airBaltic followed a period of financial turbulence and a recent vote of no confidence, as the Latvian airline navigates challenges including engine depreciation and a planned initial public offering. The move comes as airBaltic seeks to stabilize under new leadership and finalize a strategic investment from Lufthansa Group.
Martins Gauss Named CEO of Gulf Air
Former airBaltic CEO Martins Gauss has been appointed as the new Chief Executive Officer of Gulf Air, Bahrain’s national carrier. Gauss assumed his duties on November 4, 2025. He expressed his pride and gratitude for the opportunity to lead the airline, which boasts a history spanning over 75 years, and pledged to work with the team and partners to strengthen its future. Gauss plans to implement his leadership style to inspire employees, customers, and partners for collective success at Gulf Air.
Established in 1950, Gulf Air currently operates regular flights to more than 50 destinations across 30 countries in Africa, Asia, and Europe, utilizing a fleet of over 40 aircraft. Gauss’s appointment comes after his departure from airBaltic on April 7, 2025, following a vote of no confidence from the Latvian Ministry of Transport, primarily related to the airline’s financial situation. He had led airBaltic for nearly 14 years, beginning on November 1, 2011.
The leadership change at airBaltic comes as the airline navigates a challenging financial period. In 2024, airBaltic recorded a loss of €118.2 million, a reversal from the previous year’s profit, attributed to factors including engine depreciation and currency fluctuations. However, the airline also achieved record revenues of nearly €748 million in 2024 and transported over eight million passengers – its highest number to date.
Currently, Erno Hildén, formerly of SAS Scandinavian Airlines, Saudi Arabian Airlines Group, and Finnair Plc, serves as airBaltic’s CEO, having taken the helm on December 1, 2024. His mandate is to ensure the company’s continued operation and operational stability, supporting the board and collaborating with the team. Prior to Hildén’s arrival, Pauls Cālītis served as acting CEO and remains a member of the airBaltic board.
Strategic Developments at airBaltic
German airline Lufthansa is considering acquiring shares in airBaltic ahead of a planned initial public offering (IPO). Germany’s competition watchdog has approved Lufthansa’s purchase of a minority stake, and the airline is expected to acquire 10% of airBaltic. The Latvian state remains the largest shareholder in airBaltic, holding 88.37% of the shares, while Lufthansa plans to hold at least 5% following the IPO. The Latvian government has agreed to retain at least 25% plus one share after the IPO.
Changes have also been made to the airBaltic council, with a new council to be elected on February 11, 2025, ensuring a smooth transition in leadership. Lufthansa Group’s investment is viewed positively, as it provides a significant investor for the airline. The potential IPO and Lufthansa’s investment signal a strategic shift for airBaltic as it seeks to strengthen its position in the European aviation market.
