Government Approves Building of New airBaltic Terminal

10.02.2010 06:10 | Latvia

Author: Janis Vanags
Source: A/S Air Baltic Corporation

The Latvian government approved the construction of a new terminal by the Latvian airline airBaltic.

airBaltic president and CEO Bertolt Flick: “The infrastructure of the Riga International Airport has already reached its design capacity limits, and so a new terminal is acutely needed to accomodate the growing passenger numbers.”

airBaltic plans to build a terminal with a floor space of 58,000 m² – one which will be able to handle up to 15 million passengers a year. Total investments are expected to amount to more than EUR 92 million. Investments will come from the private sector, and the project will require no funding or guarantees from the state. airBaltic will negotiate with the TAV company on the construction and operation of the terminal. The airline is also negotiating with several banks on project financing. Bids for tender on construction and architectural design will be launched in the near term.

The Riga International Airport saw a passenger increase of 10.2% last year and expects a 15% increase this year. airBaltic achieved an increase in passenger numbers by more than 30% at its home base in Riga last year, and earned record profits of EUR 20 million. The per-passenger costs of the new terminal will be among the lowest in Europe.

airBalticin brief:

AIR BALTIC CORPORATION (airBaltic) is a joint stock company that was established in 1995. The primary shareholders are the Latvian state, with 52.6% of stock, and SIA Baltijas aviācijas sistēmas, with 47.2% of stock. The airBaltic fleet consists of 31 aircraft – ten Boeing 737-500, eight Boeing 737-300, two Boeing 757-200, and eleven Fokker 50 airplanes. airBaltic offers nonstop flights from three Baltic capital cities – Riga, Vilnius, and Tallinn. airBaltic received the title of Airline of the Year 2009/2010 (Gold Award) from the European Regions Airline Association. airBaltic is the winner of Air Transport World Phoenix Award 2010 – a global recognition of excellence in restructuring business.