Candidates Advance in Final Selection for AirBaltic's CEO Position in Upcoming Round
AirBaltic's New CEO to Earn Lower Salary Than Predecessor
In a change of pace for the Latvian national airline, the next CEO of AirBaltic will receive a lower salary than the previous CEO, Martin Gauss, who earned €838,568 in 2024. The exact remuneration for the new CEO is yet to be decided and will be an individual matter with the selected candidate.
The competition for the top position at AirBaltic has been intense, with applications received from more than 30 countries. The process began with over 40 applications, and after several rounds, four candidates have been nominated for the third round of the competition. However, the specific names of the finalists for the third round have not been publicly disclosed.
The competition is being conducted by the Latvian Transport Minister Atis Svinka (Progressives). The second round of the competition ended on Monday, July 21, and the candidates were assessed based on their experience, management competences, personality, and other aspects.
The third round of the competition is scheduled to take place in early August. Until the tender process is concluded, Pauls Calitis, the current interim CEO and Chief Operating Officer, will continue to manage the airline.
It is worth noting that the Latvian state currently owns 97.97 percent of AirBaltic's shares, while the financial investor, Danish businessman Lars Thuesen's Aircraft Leasing 1, owns 2.03 percent. An agreement was reached with German airline Lufthansa on investments in AirBaltic of €14 million, with Lufthansa Group receiving a convertible share giving it a 10 percent stake. Lufthansa Group will own at least 5 percent of the capital of AirBaltic after the potential IPO, as per the agreement.
The Latvian government agreed in August 2024 that the state must retain at least 25 percent plus one share in the capital of AirBaltic after the IPO. This convertible share will be converted into ordinary shares at a later date, following the IPO of AirBaltic. The size of Lufthansa Group's holding will be determined by the potential IPO market price.
In August 2024, an agreement was also reached with the Latvian government that AirBaltic would undergo an initial public offering (IPO). The exact timeline for the IPO has not been announced yet.
Stay tuned for updates on the competition and the appointment of the new CEO of AirBaltic.
References: [1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4] [5] [Source 5]
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