AirBaltic files for Chapter 11 bankruptcy in New York
The carrier said flights, tickets and customer service will continue as normal while it negotiates with creditors and aircraft lessors under court supervision.
- On Monday, AirBaltic filed for protection under Chapter 11 of the U.S. Bankruptcy Code in New York as part of a financial restructuring aimed at reducing its debt.
- Escalating fuel costs from the U.S. war with Iran doubled jet prices, worsening the airline's liquidity position after a €30 million Latvian state loan in April compounded financial pressures.
- Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management committed €350 million in debtor-in-possession financing to support operations during restructuring.
- Despite the Chapter 11 filing, AirBaltic assured customers that all flights, reservations, and services continue uninterrupted throughout the court-supervised restructuring process.
- The filing marks the second airline casualty linked to the Iran conflict after Spirit Airlines collapsed in May, while competitors like AirAsia seek fresh capital amid rising fuel pressures.
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Airline airBaltic has filed for bankruptcy protection in the United States due to financial difficulties. The company said it is filing under Chapter 11 of the U.S. Bankruptcy Code, which allows companies to restructure and raise new capital under court supervision. It said there will be no impact on normal operations or passengers.
Air Baltic flies to the five largest airports in Germany, but the Latvian company has not been running well financially for a long time. Now, the largest airline in the Baltic region is trying to pull the rudder around.
The first major victim of the EU's sanctions policy has been AirBaltic: the company has begun bankruptcy proceedings, according to Reuters
AirBaltic was unable to withstand the fuel sanctions and the ban on flights to Russia. The controlling stake in Latvia's largest airline is owned by the country's government.The statement indicates that the number of AirBaltic's creditors is up to...
The Latvian airline AirBaltic has applied in New York for protection against creditors under Chapter 11 of the U.S. Bankruptcy Code, and the procedure will allow airBaltic to restructure the debt without terminating its work.
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