airBaltic expands in Vilnius, eyes bigger market share - CEO

VILNIUS - Latvian national airline airBaltic is set to grow its presence in Vilnius by increasing the number of aircraft permanently based in the Lithuanian capital and adding more flight routes, according to Martin Gauss, the airline's board chairman and CEO.  

"We are developing in Vilnius. We are increasing routes every year from Vilnius. So we increase our presence there and we have a clear plan to go forward and develop Vilnius further," Gauss told BNS in an interview.

"We are the number one carrier in Riga, (...) in Estonia and in Tampere, Finland, and we are number three in Vilnius today. But we have a very clear target that we also grow in Vilnius and with that, obviously, also ranking up in terms of the market share," he said.

Gauss said that as the company plans to double its fleet by 2030, the number of planes in Vilnius could more than double as well.

Currently, airBaltic has two aircraft based in the Lithuanian capital, compared to four in the smaller Tallinn.

"We plan to have more aircraft in Vilnius. And once we base the aircraft there, and there will be more than one more, we will have more routes out of Vilnius," the CEO said.

"I've talked to the airport before, and we will have more aircraft flying out of Vilnius in the future. That is our plan," he added.  

The Latvian state owns 97.97 percent of airBaltic, with the remaining shares held by Denmark's financial investor Aircraft Leasing 1.

Here are other interview highlights:

* airBaltic expects record financial results this year: EUR 750 - EUR 775 million in revenue, and EUR 200 - EUR 220 million in earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR).

* The airline aims to transport over 5 million passengers this year, surpassing its pre-pandemic 2019 numbers.

* Any airport within a seven-hour flight from Vilnius is considered a "potential airBaltic destination". 

* The company's IPO is expected later this year or in 2025, and when it launches, there will be a strong focus on the Baltic countries, airBaltic's key market.

* airBaltic is already the national carrier not only in Latvia but also in all three Baltic states. 

* Gauss would not comment on reports that Germany's Lufthansa might be a new investor in the company.