Exclusive-AirBaltic in talks with unions to cut workers amid restructuring, CEO says

AirBaltic is engaged in discussions with labor unions to reach an agreement on workforce adjustments, CEO Erno Hilden revealed on Monday. The Latvian carrier has entered Chapter 11 bankruptcy proceedings to restructure its debt and navigate a worsening industry crisis triggered by the Iran conflict. Hilden emphasized that capacity reduction and workforce changes are expected outcomes of the restructuring process.

Once the discussions with unions are finalized, a more precise count of affected employees will be available. AirBaltic's CEO, a former CFO of Scandinavian Airlines, assured that operations will remain uninterrupted throughout the Chapter 11 proceedings. The most significant changes will likely occur in the carrier's wet lease business, where planes and crews are rented out to other airlines.

Union chairperson Dace Kavasa confirmed ongoing talks about alternative employment options, such as part-time positions for some workers, but the exact number of dismissals remains uncertain. Disagreements persist over the criteria for employee selection, and it is unclear if a resolution will be reached by the end of the week.