Latvian airline AirBaltic is in discussions with labour unions over potential workforce changes as part of its restructuring after voluntarily filing for Chapter 11 bankruptcy protection in the US.
The airline is planning to reduce capacity as it works to restructure its debt, with changes to its workforce being considered alongside the capacity reduction. The number of potential job cuts has not yet been finalised.
The Latvian aviation union is also discussing alternative employment arrangements for affected workers, including the possibility of part-time employment. Consultations on potential collective dismissals are ongoing, with disagreements reportedly remaining over some of the proposed criteria for determining workforce reductions.
AirBaltic filed for protection under Chapter 11 of the US Bankruptcy Code in New York on 14 September. The restructuring comes as the airline industry faces continued pressure, with the carrier also dealing with the impact of the Iran war on the aviation sector.
The airline has said its regular operations are not expected to be disrupted during the Chapter 11 process. The most significant changes are expected to affect its wet-lease business, under which AirBaltic provides aircraft and crew to other airlines for a fee.
The workforce discussions form part of a broader restructuring aimed at helping the carrier manage its financial obligations and adjust its operations to lower capacity. Further details on the number of employees who could be affected are expected after consultations with labour representatives are completed.
