The Latvian government has agreed to a €90 million investment into state-owned airBaltic, which will help mitigate losses due to Covid-19.
The deal is subject to approval by the European Commission.
Martin Gauss, chief executive of airBaltic, said: “The support of our majority shareholder to overcome the crisis reflects the recognition of the positive impact airBaltic has on the economy.
“The investment is planned to be returned to the Latvian state in form of proceeds from selling shares during a planned initial public offering of airBaltic in the future.”
Passenger traffic on airBaltic, which includes twice weekly flights between Dublin and Riga and Dublin and Vilnius, declined by 73 per cent due to the pandemic.
Last week, AVIAREPS was appointed airBaltic’s Preferred Sales Agent (PSA) in Ireland.