PM Kulbergs: airBaltic layoffs must be handled responsibly and lawfully

Prime Minister Andris Kulbergs (AS) has described national carrier airBaltic's announcement of upcoming staff reductions as difficult news, while stressing that the company's management must act responsibly — notifying employees in a timely, personal manner and in line with legal requirements. He noted that airBaltic's restructuring plan envisions first shrinking the fleet to 36 aircraft before gradually expanding it back to 41, which also means a reduced need for staff.

Kulbergs emphasized that the announced 500 to 700 positions are not merely numbers but represent real people and their families, although final decisions on individual employees have not yet been made. He called on the State Employment Agency (NVA) to be ready to assist affected workers with finding new jobs, retraining and consultations, noting that these are qualified professionals with valuable experience.

Background

airBaltic may potentially cut between 500 and 700 positions out of roughly 3,000 total employees as part of changes to its business plan, affecting up to 20% of staff across its Riga, Vilnius and Tallinn bases. The exact figure depends on ongoing union negotiations over reduced working hours for pilots and cabin crew, as well as a new organizational structure expected to be finalized by mid-October.

Dace Kavasa, head of the Latvian Aviation Union, said the union was informed of the specific numbers only minutes before they were presented to staff, despite having requested precise data since September 6. She said talks are underway on shifting employees to 85%-workload contracts, which most union members appear willing to accept, while negotiations with technical staff are due to begin in mid-October.

airBaltic's group revenue grew 4.2% last year to €779.3 million, while losses fell to €44.3 million — 2.7 times lower than the previous year. The airline carried 5.2 million passengers. Germany's Lufthansa became a shareholder last summer and currently holds 10% of shares, while the Latvian state owns 88.37%.