Latvia’s national carrier airBaltic is preparing for mass layoffs that could impact approximately 600 employees, according to an interview given by Andrejs Martinovs to the Latvian Radio programme “Labrīt”, eng.lsm.lv reported. The workforce reductions arrive as the airline shrinks its operating fleet and pursues Chapter 11 bankruptcy restructuring in the United States to reorganize financial obligations and secure fresh capital.
Fleet Reductions and Workforce Restructuring
Airline executives initially estimated total job losses between 500 and 700 positions. Martinovs declined to give a definitive final count during the October 20 broadcast, citing continuous movement in staffing levels. “The situation is changing every day, as there are people who are proactively handing in their notices themselves; they have found other jobs or are moving on to other life challenges – voluntarily and in a natural way,” Martinovs said. He added that an expected total of around 600 departures would align with previous estimates, noting that the company is not experiencing a sudden mass exodus of personnel.
Prior efforts by management to avoid deep job cuts through a large-scale transition to part-time employment or 85 percent working hours failed when the company could not reach a collective agreement with staff. Instead, airBaltic instituted an individual application process allowing employees to request reduced workloads voluntarily. Management evaluates these requests on a case-by-case basis. Meanwhile, the airline continues trimming its operational capacity, bringing its active fleet down to 36 aircraft by the end of the year before an anticipated gradual expansion back to 40 planes by 2030.
Financial Restructuring in U.S. Courts
The workforce adjustments run parallel to formal financial restructuring proceedings initiated by airBaltic in the United States under Chapter 11 bankruptcy rules. The legal process allows the carrier to reorganize its financial obligations and secure new funding.
Frequently Asked Questions
Why is airBaltic filing for Chapter 11 bankruptcy in the United States?
Chapter 11 process to reorganize its financial obligations and secure new funding.
What is the planned size of the airBaltic fleet by 2030?
Management plans to scale the fleet down to 36 aircraft by the end of the year before gradually increasing the number of operational planes back to 40 by 2030.
How many employees are expected to leave airBaltic?
While executives previously projected between 500 and 700 job losses, Andrejs Martinovs indicated that a figure of around 600 departures is likely as some workers leave voluntarily.
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