RIGA — Latvian airline airBaltic is preparing to reduce its workforce by between 500 and 700 positions, affecting employees across operational bases in Riga, Vilnius and Tallinn.
The airline filed for Chapter 11 bankruptcy in New York in September, initiating a restructuring focused on reducing debt through fleet and capacity cuts. Last month, airBaltic secured approval to access €140 million ($157 million) from a larger €350 million financing package.
CEO Erno Hilden indicated in September that the company was in discussions with labor unions regarding workforce adjustments. airBaltic confirmed Monday it remains in talks with unions about potential reduced workload arrangements for pilots and cabin crew.
New organizational structures are expected to be finalized by mid-October, the airline said. The final number of layoffs could change as the process continues.
airBaltic operates a fleet of approximately 50 Airbus A220-300 aircraft. The Latvian government holds a majority stake, while Germany's Lufthansa maintains a 10 percent minority ownership.
