Air Baltic receives EU approval for half of proposed state aid

European regulators have approved half of the state aid pledged to Air Baltic by the Latvian state earlier this year. The Latvian government – which is the carrier’s majority shareholder – agreed on a E90m equity injection into Air Baltic in August to “compensate the losses caused by the ongoing Covid-19 pandemic and to support overcoming the economic crisis”, the airline says. Some E45m of that intended investment has been approved by the EC, Air Baltic says on 22 December, with the rest of the equity “still subject to the approval”. It does not indicate when a decision can be expected on the remaining portion. “The support of our majority shareholder to overcome the crisis reflects the recognition of the positive impact Air Baltic has on the economy,” says Air Baltic CE Martin Gauss. “The European Commission has concluded that the Covid-19 pandemic qualifies as such an exceptional occurrence that exceptional interventions by member states to compensate for the damages linked to it are justified.”<br/>