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Exclusive-AirBaltic in talks with unions to cut workers amid restructuring, CEO says - Finance news and analysis from Global Banking & Finance Review
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Exclusive-AirBaltic in talks with unions to cut workers amid restructuring, CEO says

Published by Global Banking & Finance Review

Posted on September 14, 2026

2 min read

· Last updated: September 14, 2026

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AirBaltic Holds Union Talks on Workforce Cuts Amid Chapter 11 Restructuring

AirBaltic's Workforce Adjustments and Chapter 11 Proceedings

By Joanna Plucinska

Labour Union Consultations on Workforce Reduction

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.

Capacity Reduction and Workforce Impact

"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."

"When all of that is concluded, then it is going to be time to really come up with numbers."

Chapter 11 Bankruptcy Filing and Operational Continuity

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.

Leadership Experience and Business Model Changes

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.

Wet Lease Business Adjustments

He added 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.

Union Perspectives and Employment Solutions

The chairperson of the Latvian aviation union, Dace Kavasa, told Reuters talks were taking place about instituting "alternative employment solutions", including allowing some workers to stay on part-time and it was still unclear how many people would be dismissed. 

Ongoing Consultations and Uncertainties

"The collective dismissal consultations are ongoing. There are a lot of unknowns. There are still quite serious disagreements on the objectivity of some proposed criteria," Kavasa said, adding that they were hoping for some constructive decisions by the end of the week. 

(Reporting by Joanna Plucinska; Editing by Adam Jourdan and Susan Fenton)

Key Takeaways

  • airBaltic filed for Chapter 11 bankruptcy protection on September 14, 2026, aiming to restructure debt and secure financial stability amid elevated costs from the Iran war (au.marketscreener.com).
  • CEO Erno Hildén confirmed that capacity cuts make workforce adjustments inevitable and that consultations with labor unions are underway to determine reduction numbers (au.marketscreener.com).
  • Despite the restructuring, airBaltic assures no disruption to flight operations or customer services; however, its wet-lease business may see the most significant changes (au.marketscreener.com).

References

Frequently Asked Questions

Why is AirBaltic entering Chapter 11 bankruptcy proceedings?
AirBaltic has filed for Chapter 11 bankruptcy in New York to restructure its debt and survive the aviation sector crisis caused by the Iran war.
Are there expected job losses at AirBaltic?
AirBaltic is in talks with unions regarding workforce adjustments, including possible dismissals and alternative employment solutions like part-time roles.
Will AirBaltic's operations be interrupted during restructuring?
No, the CEO stated there will be no expected interruptions or changes to AirBaltic’s operations during the Chapter 11 proceedings.
What changes are expected in AirBaltic’s business model?
The main changes will be in AirBaltic's wet lease business, where it leases planes and crew to other airlines.
What is the current status of discussions between AirBaltic and the unions?
Discussions are ongoing, focused on collective dismissals and alternative solutions with disagreements remaining on proposed criteria.

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