Latvian ministers have called for the resignation of the chief executive of airBaltic after the state-owned airline revealed that engine maintenance issues would force it to cancel 4,670 flights scheduled for this summer. 

Latvia's national airline had been expected to launch an initial public offering (IPO) later this year but these plans will now be in doubt.

Latvia’s Economics Minister Viktors Valainis has called for changes in the airline’s executive management, including replacing CEO Martin Gauss. Meanwhile, Transport Minister Kaspars Briskens has suggested that the airline’s supervisory council, which is responsible for overseeing management, should be scrutinised. 

Gauss has defended the airline's cancellations and has hit back against politicians, who he told  Latvian Television on January 6, “often harm the airline” by their political decisions, eng.lsm.lv reported.

Regarding political pressures and statements about the possible change in the company’s management, Gauss said he had seen “many politicians come and go during my tenure”.

The airline has stated that the engine maintenance issues are beyond its control, with the engine manufacturer Pratt & Whitney being responsible for the delays. Although airBaltic was informed of the maintenance delays just before Christmas, the company waited until after New Year to make a public announcement.

Gauss also explained that airBaltic still has long-term lease contracts for aircraft, but many of these aircraft will be used over the next three years by the airline to provide wet leasing operations for the German airline Lufthansa Group because it is more profitable, eng.lsm.lv reported.

Gauss also acknowledged that the airline’s financial difficulties were partly due to past debts and losses during the COVID-19 pandemic restrictions but added that there were no plans to request more government funds.

However, the company’s chairman Klavs Vasks earlier suggested that the airline’s bond liabilities are unsustainable, and additional state capital might be necessary, eng.lsm.lv reported.

Estonian aviation expert Sven Kukemelk noted that airBaltic is a major player at Tallinn Airport, with every third passenger flying with the airline, so these cancellations will significantly impact the airport, ERR.ee reported.

In an interview with bne IntelliNews in September 2024, Gauss shied away from discussing the IPO directly but was keen to talk about the turnaround story at airBaltic over the past decade.