Latvian state-owned airBaltic's growth strategy excludes Nordica acquisition.
Key Points:
- Despite Nordica's restructuring, airBaltic remains uninterested in its acquisition, asserts Martin Gauss, airBaltic's CEO.
- EU coronavirus aid rules currently prevent airBaltic from buying other airlines.
- Gauss highlights airBaltic's intention to expand via additional planes, not acquisitions, with plans to go public next year.
RIGA — Following Nordica's entry into a restructuring phase in Tallinn, airBaltic's CEO, Martin Gauss, stated on the Estonian news show Aktuaalne kaamera that he remains optimistic about the Estonian airline's prospects, ch-aviation reports.
He hopes that with a new team at the helm, both Nordica and its ACMI-charter subsidiary Xfly can become profitable once again. However, even if this turnaround occurs, airBaltic has dismissed any intention to acquire the airline.
While airBaltic did wet-lease a CRJ900 from Xfly this year, the airline, like Nordica, has been wrestling with spare parts supply challenges since the pandemic's onset. Nonetheless, the Latvian airline continues to operate its planned flights.
Drawing attention to the regulations tied to the European Union’s coronavirus assistance, Gauss remarked, “The current EU aid restrictions hinder us from purchasing other airlines. Our distinct strategy is to grow our fleet, especially with the A220-300 aircraft. We're preparing for the arrival of our 50th plane next year and intend to place further orders. Additionally, we’re gearing up to go public in the coming year.”
Gauss further elaborated on the company's business strategy by commenting, “Several of our aircraft are currently grounded due to the delayed delivery of requisite engines. Our expansion plan clearly revolves around procuring more planes rather than acquisitions. We've effectively implemented this strategy in Estonia and will remain committed to intentional growth there. Consequently, I see no reason for any acquisitions in Estonia.”
While airBaltic did wet-lease a CRJ900 from Xfly this year, the airline, like Nordica, has been wrestling with spare parts supply challenges since the pandemic's onset. Nonetheless, the Latvian airline continues to operate its planned flights.
Drawing attention to the regulations tied to the European Union’s coronavirus assistance, Gauss remarked, “The current EU aid restrictions hinder us from purchasing other airlines. Our distinct strategy is to grow our fleet, especially with the A220-300 aircraft. We're preparing for the arrival of our 50th plane next year and intend to place further orders. Additionally, we’re gearing up to go public in the coming year.”
Gauss further elaborated on the company's business strategy by commenting, “Several of our aircraft are currently grounded due to the delayed delivery of requisite engines. Our expansion plan clearly revolves around procuring more planes rather than acquisitions. We've effectively implemented this strategy in Estonia and will remain committed to intentional growth there. Consequently, I see no reason for any acquisitions in Estonia.”
