airBaltic-Etihad codeshare could lead to deeper links. Meanwhile, EU state aid inquiry continues

AirBaltic commenced a new codeshare with Etihad Airways on 16-Dec-2013, launching a four times weekly A319 service and linking its Riga hub with Etihad's in Abu Dhabi. Riga is the Baltic region's principal transfer point - the airport says that 33% of passengers in 2013 are transit/transfer traffic - and Abu Dhabi is rapidly emerging as an important hub for travellers flying between Europe and Asia.

Following airBaltic's near bankruptcy in 2011 and its subsequent renationalisation and investment from the Latvian Government, the state has been on the look out for a private sector investor. Meanwhile, CEO Martin Gauss has been focusing on the carrier's restructuring programme and expects to restore profitability in 2014 after achieving better than expected results for 9M2013.

An EU investigation into state aid received in 2011 is ongoing and could potentially lead to the carrier having to repay the funds received from the state. This would increase the pressure to secure fresh investment. Some observers have suggested that the Etihad partnership could be a stepping stone to a future equity relationship. The codeshare attests to some meeting of minds already.