It has also been decided to leave the 2019 dividends in the amount of 4.51 million euros at the disposal of the company.
The ministry explained that these steps will help ensure the airport’s ability to overcome the crisis caused by the Covid-19 pandemic and stabilize the operations of the largest international aviation company in the Baltics.
Minister of Transport Tālis Linkaits (JKP) explained the government’s decision by the fact that Riga Airport is the main traffic center in the region, which ensures Latvia’s international accessibility, indicating that Riga Airport manages infrastructure strategically important for national security.
“I am convinced that after the lifting of the emergency, convenient connections in the Baltic region and Europe will be necessary for both our businesses and citizens. At the moment, it is important to keep the airport operating under reduced demand, keeping the core of aviation professionals working for us,” he said.
After the government meeting, Linkaits told reporters that the government is interested in the importance of Riga Airport in the region remaining even after the crisis. The funds allocated accordingly will allow the airport to maintain its core business as well as to resume operations after the crisis.
“The airport has kept its workforce intact enough during this time, and for those employees who currently work at the airport, the work will be kept intact,” said Linkaits.
The ministry also pointed out that last year Riga Airport showed the historically best financial indicators, reaching 7.8 million passengers.
The government’s decision to suspend international passenger traffic has had a direct impact on the airport’s operations, suspending its economic activity almost completely. Compared to the corresponding period of 2019, the number of passengers served at the airport in the first half of April has decreased by 99.9%.
According to the ministry, given that the magnitude of the impact of the Covid-19 crisis is still unknown, the airport’s board has modeled various economic recovery scenarios and developed a cost-cutting action program that includes both total operating costs, including staff costs and infrastructure development costs. projects.
The Ministry explained that the increase of the share capital will allow to effectively ensure the operational operation of the airport during the emergency situation and to continue the most important investment projects.
At present, the share capital of Riga Airport is 28.61 million euros, thus the share capital of the company will be increased to 78.52 million euros.
It has already been reported that an emergency situation has been declared in Latvia since March 13 in connection with the spread of the Covid-19 virus, during which time a number of restrictions have been set. This includes the abolition of international passenger transport through airports since 17 March.
Riga International Airport is the largest air traffic hub in the Baltic States.
