Rungainis: airBaltic must actively seek a strategic investor this year
Rungainis emphasized that airBaltic should focus on finding a strategic investor in 2023, especially considering Lufthansa's current stake in the company and the uncertainties facing the aviation industry.
Ģirts Rungainis, a partner at the financial consultancy firm Prudentia, stated that the Latvian national airline airBaltic needs to actively seek a strategic investor this year. Currently, 10% of airBaltic's shares are owned by the German national airline Lufthansa, and there is an ongoing discussion about whether Lufthansa is willing to increase its involvement in the company and under what terms. Rungainis noted that Lufthansa has already shown some interest, and the situation will depend on their perspective regarding bringing a new investor on board.
Rungainis also highlighted the presence of investors looking for companies to invest in before their initial public offerings. While this could bode well for airBaltic, he emphasized the need for deeper analysis regarding the level of interest in the airline, particularly given the recent uncertainties in the aviation industry due to conflicts in the Middle East. These factors create a challenging environment for airBaltic as it navigates its financial future and seeks new investments to bolster its operations.
Additionally, with airBaltic projected to incur losses of €44.337 million in 2025, Rungainis underlined the urgency of finding strategic investment to stabilize the company's financial standing. The ongoing situation necessitates swift action as the airline prepares for potential market fluctuations, which may affect investor confidence and operational viability.