AirBaltic in Talks With Unions for Workforce Cuts During Chapter 11 Restructuring
By Joanna Plucinska
AirBaltic's Chapter 11 Bankruptcy and Workforce Adjustments
Ongoing Negotiations With Labour Unions
LONDON, Sept 14 (Reuters) - AirBaltic is in talks with labour unions to come to an agreement on an "adjustment in the workforce," Chief Executive Erno Hilden told Reuters on Monday after the Latvian carrier announced it was voluntarily entering Chapter 11 bankruptcy proceedings.
Consultation Process and Expected Outcomes
"We are currently carrying out the consultations with the labour unions," Hilden said, adding that with plans to reduce capacity, a change in workforce is a "natural conclusion."
Timeline for Workforce Reduction Details
"When all of that is concluded, then it is going to be time to really come up with numbers."
Details of Chapter 11 Filing
AirBaltic filed for protection under Chapter 11 of the U.S. Bankruptcy Code in New York on Monday as it seeks to restructure its debt pile, head off creditors and survive a deepening sector-wide crisis brought on by the Iran war.
Operational Continuity During Restructuring
Hilden, previously CFO for Scandinavian Airlines where he steered the firm through a similar bankruptcy process, added that there would be no interruption or change expected to airBaltic's operations during the Chapter 11 proceedings.
Impact on Wet Lease Business
He added, however, that the biggest changes would involve the carrier's so-called "wet lease" business, where it loans out its planes and crew to other carriers for a fee.
(Reporting by Joanna Plucinska; Editing by Adam Jourdan and Susan Fenton)
