On Thursday, 23 April, Latvia’s Cabinet of Ministers decided to increase Riga International Airport’s base capital by EUR 49.91 million.
It was also decided to leave dividends of EUR 4.51 million from 2019 in the company’s hands.
Transport Ministry explains these steps will help ensure the airport is able to overcome the crisis caused by COVID-19 pandemic and stabilize operations of the biggest international aviation company in Baltic States.
Transport Minister Tālis Linkaits explained the government’s decision by saying Riga airport is the region’s main transport hub that ensures Latvia is internationally reachable, stressing the strategic importance of Riga airport’s infrastructure.
‘I am convinced that after the end of the state of emergency convenient connectivity within the Baltic region and Europe will be needed for our entrepreneurs and residents. Currently it is important to ensure operations of the airport within conditions of limited demand, preserving the core of aviation professionals who work for the good of our country at the airport,’ stressed the minister.
The ministry also notes that last year Riga airport demonstrated historically the best financial results, as the number of serviced passengers reached 7.8 million.
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The government’s decision to temporarily shut down all international passenger services has directly affected the airport’s operations, almost completely putting its economic operations on hold. Compared to the same period of 2019, the number of passengers serviced in the first half of April has reduced 99.9%.
According to the minister, considering the extent of damage from COVID-19 crisis remains unknown, the board of the airport has modelled different economic operation restoration scenarios and has developed an action programme to reduce costs.
The ministry explained the increase of base capital would help effectively ensure the airport’s operations during the state of emergency and help continue the most important investment projects.
Riga International Airport’s base capital is EUR 28.61 million at the moment. Support from the government would help increase the capital to EUR 78.52 million.