Covington advised airBaltic on the notification to the European Commission of a €250 million recapitalization by the Latvian government.
The measure was approved under the EU’s Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak.
In the second quarter of 2020, Member States and non-EU countries implemented travel restrictions in response to the health emergency. airBaltic has suffered substantial losses resulting from these travel restrictions and the coronavirus outbreak, and is currently facing an acute risk of default and insolvency. The aid will support airBaltic during the COVID-19 crisis, save jobs and maintain the connectivity of the Baltic region to the rest of the world.
airBaltic is the leading airline in the Baltic region that is 80 per cent owned by the government of Latvia. airBaltic currently flies to over 80 destinations and has one of the world’s most modern and fuel efficient Airbus A220-300 aircraft fleet. The Company is the fastest growing airline by number of passengers in the Baltics and is the flag carrier of Latvia.
The Covington team advising airBaltic was led the by co-chair of the firm’s global competition team Johan Ysewyn (Picture) and senior advisor Sophie Bertin, and included Geoffrey Kalantari and Konstantina Sideri.
Law Firms: Covington & Burling;