airBaltic plans to cut up to 700 jobs in Chapter 11 restructuring
The Latvian carrier intends to shed between 500 and 700 positions across its Baltic bases as it restructures under US bankruptcy protection. Unions have rejected the company's handling of the plan.
airBaltic will cut 500 to 700 jobs across several bases, the Latvian airline said. The cuts form part of a wider financial restructuring launched after the carrier sought bankruptcy protection in the United States, with the aim of reducing operating costs and debt.
In September the company filed for Chapter 11 of the US Bankruptcy Code in New York. That filing is meant to allow a full restructuring centred on cutting its growing debt through planned reductions to operating capacity and its aircraft fleet.
During the proceedings the airline secured approval last month for 140 million euros, about 157 million dollars, from a larger 350 million euro financing package.
The staffing cuts will fall on its three main Baltic operating centres: Riga in Latvia, Vilnius in Lithuania and Tallinn in Estonia.
Chief executive Erno Hilden told Reuters in September that the airline was in talks with unions on a workforce adjustment.
Management expects the new organisational structures for the rest of the company to be formally defined by mid-October. airBaltic warned that the final number of departures could change as the process develops.
Union representatives have opposed how the plan is being handled. Dace Kavasa, president of the union, was quoted rejecting the company's approach.
Sources
- aviacionaldia.comairBaltic prepara el despido de hasta 700 empleados como parte de su reestructuración bajo el Capítulo 11