European Commission confirmed (15-Mar-2011) it has launched infringement procedures against Estonia, Greece, Hungary, Lithuania, Malta and Slovenia regarding their bilateral air service agreements with Russia. The EC has sent each of these EU Member States a "letter of formal notice" expressing concern their agreements "may hinder equal treatment of EU airlines and competition between European airlines and provide the basis for Siberian overflight charges that may be illegal under EU antitrust rules". Seventeen other Member States have been issued letters of notice. The EC stated that forcing EU airlines to pay to operate over Siberia en route to Asian destinations "can not only make the flights more expensive, but can also lead to unfair competition between EU and non-EU airlines". [more]
EU launches infringement procedures against Greece over agreements with Russia
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It has achieved its turnaround in the face of strong competition from foreign LCCs, justifying its positioning as a "hybrid LCC". Data provided to CAPA confirm that its unit cost level is also broadly consistent with the LCC tag. It is now seeking further investment from a strategic investor – preferably another airline. It also faces a decision about the replacement of its Dash 8 turboprop fleet.
AirBaltic CEO Martin Gauss told CAPA that the airline plans for passenger growth to accelerate from 12% in the past year to 16% in 2017, taking traffic levels back above 3 million passengers. For an airline based in a country inhabited by only 2 million people, this suggests that airBaltic has been making some judicious network decisions.
airBaltic reaps rewards of restructuring rigour in Riga. Launch operator of CS300 returns to growth
On 28-Nov-2016 airBaltic took delivery of the world's first Bombardier CS300 for commercial service, which will begin on 14-Dec-2016 with a flight from Riga to Amsterdam. It will receive a further 19 of the aircraft variant by 2019.
Just five years ago airBaltic was heavily loss-making and close to bankruptcy. Under CEO Martin Gauss Latvia's national airline has negotiated a successful restructuring programme, established a track record of growing profits, secured a private investor alongside the national government, made significant load factor gains, and is now returning to capacity growth.
The new CSeries order should allow airBaltic to build on these achievements by replacing its ageing Boeing 737s with one of the most modern and efficient narrowbodies aircraft in the world, while also providing additional growth capacity. Together with its Dash-8 turboprop aircraft this purchase should give it a fleet well adapted to the niche needs of a hybrid regional hub airline based in northern Europe's smaller markets.