airBaltic Petitions for Legal Protection, but is Denied

September 26, 2011 Leave a comment

Despite a steady increase in passengers since the beginning of the year, airBaltic  filed for legal protection (similar but not identical to bankruptcy protection) in an attempt to influence infighting between the company’s two biggest shareholders.  In response, the Court denied their request for legal protection.

In April 2010, Baltic Aviation Systems (BAS), 47.2% private shareholders in airBaltic, decided to increase their capital share in the airline. The Latvian government, which owns 52.6% of airBaltic, felt the only way to keep the airline from facing bankruptcy was by getting aid from the state, which Latvia’s Prime Minister, Valdis Dombrovskis, indicated would not happen if Bertolt Flick, President and CEO of airBaltic, remained at his position.

Over the months since, the two shareholders have been in a stalemate.

According to Flick, the Latvian government has “neglectfully and repeatedly delayed any decisions regarding the capital increase.”  He claimed that after BAS agreed to all government conditions on September 16, the government delayed decision-making once again by “suddenly and surprisingly” announcing the “potential sale of its shares in the airline”.

The plan for airBaltic’s continued operations would have included a nominated administrator, akin to a bankruptcy trustee, to be “responsible for the legal protection plan that all parties have to follow, including the shareholders, the management, and the Supervisory Board.”   airBaltic claimed this would have prevented the Latvian government from having any say in future decision-making while keeping the management of the airline the same.  The Court appears to have rejected airBaltic’s petition because airBaltic is having a conflict among its owners but does not appear to be insolvent and therefore does not need this legal protection.

The airBaltic fleet currently consists of 34 aircraft:

  • 2 Boeing 757-200,
  • 6 Boeing 737-500s,
  • 8 Boeing 737-300,
  • 10 Fokker-50s and
  • 8 Bombardier Q400 NextGen

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Arrival of the 787 Dreamliner

September 23, 2011 Leave a comment

The much-anticipated arrival of the Boeing 787 Dreamliner is upon us! On September 26th, ANA will be receiving the first delivery of the aircraft, and it’s inaugural flight to Japan will be broadcast live online, September 28th at 8:30 a.m. JDT (September 27th at 7:30 p.m. EDT).

Several upgrades have been made to the 787 to make it more environmentally-friendly, including design changes that increase fuel efficiency by 20%. The Dreamliner is also composed of fewer hazardous materials, making it easier to recycle the aircraft upon its end-of-life and further minimizing the dangers to human health associated with both production and operation of the aircraft. Inside the cabin, fluorescent lamps have been replaced with light emitting diodes (LED) which are lighter, consume less power, and last longer than their predecessors. LED lighting is less harsh, and Boeing says this creates a more relaxing space, enhancing the comfort of passengers.

Several characteristics of the 787 are designed to increase passenger comfort including:

–         bigger windows allowing non-window seat passengers to look out;

–         spacious storage to allow for more luggage to be carried onboard; and

–         new filters helping remove irritants and gaseous contaminants leading to a decrease in throat, eye and nose irritation.

These features, among others, are being touted as features that will help create a more luxurious way to travel both for passengers and the environment.

The 787 will provide an exciting new platform for parts sales!

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