Latvian carrier requires the funds to support its fleet-reduction plan.
Air Baltic says it has agreed terms with “certain” bondholders and finance providers for up to €257 million ($299 million) of interim financing, which it needs to support its fleet-reduction strategy.
The proposed financing remains subject to bondholder and shareholder approval. A bondholder meeting on the proposal is scheduled for 11 September.
If approved, €180 million “is expected to become available shortly”, says Air Baltic, with a further €77 million coming “once additional conditions have been met”.
“The proposed financing gives us a clear path to secure the liquidity Air Baltic needs for the next phase of its development,” says the carrier’s chief executive Erno Hilden.
“Our revised business plan requires us to take decisive steps to strengthen the company’s financial position and build a more efficient and self-sufficient airline.”
The interim financing, adds Hilden, will “give us the necessary time and resources to put those measures into action, while continuing to operate flights and serve passengers as planned”.
Air Baltic last month unveiled a revised business plan that will see it reduce its 54-strong fleet of Airbus A220-300s to 36 aircraft by the end of this year, with a longer-term aim to operate 41 aircraft by 2031 – down from 100 as previously envisioned.
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