Tension continues within Latvia’s governing coalition regarding a €30 million loan for the national airline, airBaltic. While the government conceptually supports the loan, the Green and Farmers’ Union (ZZS) is still hesitant to grant its final approval. As partners debate, Prime Minister Evika Siliņa is already seeking support from opposition parties to avert a crisis for the airline.
ZZS Concerns and Past Losses
ZZS politicians express dissatisfaction, believing the Ministry of Transport previously provided incomplete information about airBaltic, a claim supported by an assessment from the State Audit Office. Economic Minister Viktors Valainis voiced skepticism about the loan’s repayment, recalling past losses of €340 million from similar arrangements. He believes there is currently a lack of guarantees that the funding will be recovered.
“The government has repeatedly disappointed the Saeima on these issues. When it comes to the Saeima, we warned almost a year ago that it would be very difficult for us to trust simply the responsible minister’s promise that this time it would be different than all the other times,” Valainis stated.
Demands for Accountability
Transport Minister Atis Švinka received a specific demand from ZZS during a meeting, on which his party, “Progresīvie,” will decide soon. Sources indicate the demand concerns personal political responsibility for the loan’s repayment, though details remain undisclosed publicly.
“I will not comment further on this offer at this time. We need to discuss it within the government, and we will come up with a statement,” Švinka said.
Seeking Broader Support
If coalition partners cannot be convinced, “Progresīvie” does not rule out seeking support from the opposition. Prime Minister Evika Siliņa acknowledged that the decision to use additional budget funds is unpopular but critical for the company’s operational activity.
“I think there is a dead end right now. We need to find a fairly quick solution so that airBaltic does not remain without a clear mandate from the Saeima,” Siliņa said.
“The government has decided, the government is also ready to consider various solutions to facilitate this acceptance procedure for the Saeima, because I understand that these are not regular issues considered by the Saeima,” the Prime Minister stated.
Siliņa has repeatedly urged her government colleagues to focus on economically sound decisions rather than pre-election rhetoric. She also stated she has begun informal talks with opposition parties, suggesting a solution may be sought outside the coalition’s majority. A final decision on the €30 million loan is likely tomorrow, when coalition partners will meet again.
Frequently Asked Questions
What is the current status of the loan for airBaltic?
The government conceptually supports a €30 million loan for airBaltic, but the ZZS is withholding final approval due to concerns about information provided by the Ministry of Transport and the risk of not being repaid.
What is the Prime Minister doing to resolve the situation?
Prime Minister Evika Siliņa is seeking support from opposition parties to secure the necessary votes for the loan, recognizing the urgency of the situation.
What were airBaltic’s financial results in 2025?
airBaltic experienced a loss of €44.3 million in 2025, which is 2.7 times smaller than the loss in the previous year. The company’s revenue in 2025 was €779.3 million, a 4% increase compared to the previous year.
Given the ongoing debate and the potential for a vote in the Saeima, what factors do you believe will ultimately determine the fate of the proposed loan to airBaltic?
