The Latvian State Audit has urged the government to tighter control over the use of €250 million provided to the national airline Air Baltic Corporation (airBaltic).
After analysing the general situation in the aviation section at the start of 2020, State Audit concluded that state aid provided to airBaltic during Covid-19 crisis can be considered investment into state interests. Financing was necessary so that airBaltic could survive in a period of uncertainty and difficulties and continue operations once the crisis is over.
At the same time, the State Audit admits that it remains important to exercise control over the airline from the shareholder and government side to ensure the money is used in accordance with the initially announced goals and airBaltic is able to recover the state financing within five to seven years.
This financing, considering the sheer size of state aid, requires appropriate monitoring and recovery procedure.
