AirBaltic Workforce Reduction
AirBaltic Plans Up To 700 Job Cuts Amid Chapter 11 Restructuring
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Key Points
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The new business plan envisages reducing airBaltic’s fleet from 54 to 36 aircraft.
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The airline’s revised operating model is also expected to expand year-round Aircraft, Crew, Maintenance and Insurance (ACMI) partnerships.
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airBaltic has informed Latvia’s State Employment Agency that it is starting a planned collective-dismissal procedure, and said it will give staff more detailed information on the procedure’s phases during October.
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The airline said its current flight program is not affected by the proposed changes and continues to operate normally.
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AirBaltic reported first-quarter losses of €70 million, double the prior-year level, even as revenue rose 12.3% to €149 million and passenger numbers increased by 5%.
airBaltic is cutting up to 700 jobs — roughly a quarter of its 3,000-person workforce — as the Latvian airline restructures under Chapter 11 bankruptcy protection Yahoo Finance. The cuts will span bases in Riga, Vilnius, and Tallinn and include possible reduced workloads for pilots and cabin crew. The airline says flights continue normally while it develops a new cost-cutting business plan.
The job losses come despite revenue gains: airBaltic reported first-quarter revenue of €149 million, up 12.3% year-over-year, and passenger numbers rose 5% MarketScreener. Yet the airline lost €70 million in the quarter — double the prior year — forcing management to shrink its fleet from 54 aircraft to 36 and expand cheaper outsourced aircraft partnerships.
Fleet Shrinkage and Cost-Cutting Overhaul
airBaltic's new business plan cuts deep. The airline will reduce its fleet from 54 to just 36 aircraft AeroTime. To offset capacity losses, the airline is expanding Aircraft, Crew, Maintenance and Insurance (ACMI) partnerships — a model where airBaltic leases planes with crews from other carriers, avoiding ownership costs. This shift lets the airline maintain routes without buying or maintaining expensive aircraft.
Union Talks on Pilot and Crew Workload Changes
airBaltic is consulting with labor unions about restructuring work for pilots and cabin crew. The talks focus on possible reduced workloads and revised schedules as part of the airline's Chapter 11 overhaul NDTV Profit. No details on specific changes have been released, but the goal is lowering labor costs without immediate mass layoffs for all staff.
October Timeline for Dismissal Procedure Details
airBaltic has formally notified Latvia's State Employment Agency that it is starting a planned collective-dismissal procedure MarketScreener. The airline promised to give employees detailed information on the procedure's phases during October. The 500 to 700 job-cut estimate remains preliminary — final numbers depend on union negotiations and the restructuring's pace.
Current Flight Operations Unaffected by Cuts
Despite the sweeping restructuring, airBaltic says its current flight program operates normally and remains unaffected by the proposed changes Yahoo Finance. The airline filed for Chapter 11 bankruptcy in New York in September, targeting completion of the restructuring within months. Management is betting that a leaner fleet and lower labor costs will restore profitability.
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