Latvia-Based Airline airBaltic Files for Bankruptcy Protection
Facing financial difficulties, airBaltic has entered a court-supervised restructuring process in the US, but announced that flights will not be disrupted.
Struggling due to rising fuel costs and an economic crisis, Latvia-based airline airBaltic has initiated a restructuring process by filing for Chapter 11 bankruptcy protection in the US.
Restructuring Process
Latvia-based airline airBaltic has filed for Chapter 11 bankruptcy protection in the United States in order to overcome its deepening financial bottleneck.
With this step, the company aims to reorganize its debts and operational structure under court supervision.
Flights and Operations Continue
Despite the official start of the restructuring process, officials stated that there will be no disruptions in operations concerning passengers.
According to statements made, all flights and daily operations will continue normally without interruption.
Background of the Financial Crisis
The airline announced that despite the state support received in April, it could not escape the liquidity crisis and existing financing plans remained insufficient.
Rising fuel costs triggered by the crisis in the Middle East and additional economic difficulties were the main factors in the deterioration of the company's financial condition.