KNAB states that its office has received submissions from private individuals regarding Gaus’s possible presence in a conflict of interest situation.
At the beginning of January, the representative of the National Union (NA) Đirts Lapiņš published on social media that “Martin Gaus owns the German company “MaGau GmBH”, which in turn owns the company “2e systems gmbh”. This “2e systems” is a supplier of “AirBaltic”.
On the other hand, “airBaltic” representatives explained to LETA agency that “2e systems” has been a cooperation partner of “airBaltic” since 2006, or more than four years before Gauss was invited to join “airBaltic” as the chairman of the board.
After starting to manage “airBaltic” and learning that “2e systems” is a supplier of “airBaltic”, Gauss declared his connection with this company. The declarations of Gaus’s state officials show that he owns 100% of the shares in the company “Magau GmbH”. At the same time, “Magau GmbH” owns 1.25% of “2e systems” shares, the airline explained.
“airBaltic” emphasized that, despite the minimal participation in the capital of “2e systems”, guided by the principles of conflict of interest, Gauss has always refrained from any involvement in decision-making related to this supplier. The company noted that anyone can own shares in companies, and this is a normal, common practice in international business.
“airBaltic” stated that the airline fully complies with Latvian laws and principles of corporate governance, and Gauss, upon joining “airBaltic”, revealed a minimum stake in “2e systems”, and this was recorded in his board member’s contract in 2011, thereby refraining from any involvement in making decisions related to this supplier, ensuring transparency and compliance with the regulations regulating conflicts of interest.
Also, the representatives of “airBaltic” emphasized that the question regarding “2e systems” has created discussions in the media and social networks, as a result of which false information is being spread. In order to dispel any shadow of suspicion about “airBaltic”, its management and corporate governance, “airBaltic” has proactively contacted KNAB to provide an explanation of the situation and all the necessary information that proves the compliance of “airBaltic” and its management’s actions with the regulations and developed contract policies.
“airBaltic” representatives added that “2e systems” provides IT services in the field of ticket sales and e‑commerce and website maintenance for several leading global airlines, including “airBaltic”. According to “airBaltic”, the contract has been concluded and is maintained in strict accordance with the contract policies developed by “airBaltic”, ensuring full transparency.
The information on the “2e systems” website shows that “airBaltic” and “2e systems” started a project in 2019 to expand and improve the “airBaltic” online flight purchase and reservation solution. The respective teams actively collaborated to expand the existing online booking solution that would support airBaltic’s growth plans.
LETA already reported that on Monday the parties of the ruling coalition have not yet decided whether to insist on the replacement of the chairman of the board of the Latvian national airline “airBaltic” Gaus, instead deciding to await the decisions of the shareholders’ meeting.
The work of the board of the company is expected to be evaluated at the shareholders’ meeting of “airBaltic” on January 21 this year, according to the statement of Transport Minister Kaspars Briškens (P) on social networks.
The minister emphasized that “airBaltic” is a strategically important exporting company for the country, which makes a direct contribution not only to the aviation industry, but to the entire economy of Latvia. In order for the company to continue growing, its management has promised to attract 300 million euros of private capital for the implementation of the business plan.
“You have to keep your promises and if the circumstances change, you should always have a clear plan B. We evaluate the work of the Council and especially its chairman Klāvas Vaskas by results, correct and timely communication and the ability to manage the company even in challenging times,” Briškens wrote.
“airBaltic” started the year 2025 with the announcement that this year due to delays in engine maintenance by their manufacturer “Pratt & Whitney”, the airline will stop flights on 19 routes and reduce the number of flight frequencies on 21 routes this summer. A total of 4,670 flights will be cancelled.
“airBaltic” will cancel flights on 10 routes from Riga during the summer season – to Aberdeen, Belgrade, Cluj-Napoca, Yerevan, Gothenburg, Mykonos, Pristina, Rzeszów, Skopje and Stavanger. On the other hand, during the summer season, flights to Dubrovnik and Hamburg will be canceled from Tallinn, from Vilnius – to Dubrovnik, Ibis, Rhodes, Chisinau, Tel Aviv and Valencia, and from Tampere – to Rhodes.
After the airline’s announcement, Briškens announced on social networks that he was instructed to immediately explain to the board of “airBaltic” the validity of the flight cancellation decision and its impact on Latvia’s connectivity.
At the same time, Briškens expressed that the management of “airBaltic”, including Gaus and the chairman of the board Vaskas, have the obligation to realize their promises to attract capital in the amount of EUR 300 million for the implementation of the business plan, as well as to ensure that the operations of “airBaltic” correspond to the interests of the Latvian state and passengers.
Gauss told the LETA agency that the situation that has arisen in society and the public environment after “airBaltic’s” announcement of the cancellation of almost 5,000 flights has been disproportionately exaggerated due to political reasons, and the plan of airline “A” is to conduct an initial public offering (IPO) of shares this year and achieve results so that no additional investment from the state is required.
It was also reported that on August 30, 2024, the government agreed in the closed part that the share capital of “airBaltic” in preparation for the IPO will be reduced by 571.293 million euros and the share structure of the existing company will be simplified, but according to “Firmas.lv” data, the changes are still have not been carried out.
The regulations for the reduction of share capital state that the share capital of “airBaltic” will be reduced to 25.179 million euros.
It was also reported that the government of Latvia agreed in the closed part of the meeting on August 30 that the state should retain at least 25% plus one share in the company’s capital after the IPO of “airBaltic” shares.
Brišken previously explained that there are no negotiations with the strategic investor of “airBaltic” about the sale of a controlling stake, but about obtaining a minority stake before the IPO or on the way to the IPO, as well as possibly participating in the IPO.
Unofficial information shows that the German national airline “Lufthansa” could become the strategic investor of “airBaltic”, which would initially acquire approximately 10% of the shares.
Briskens has so far not officially disclosed whether the potential strategic investor is “Lufthansa”, as well as how many capital shares of “airBaltic” could be sold to the investor and for what amount. “The work continues. There must be a mutual agreement to disclose such information. By the time the transaction documents are concluded, both parties will immediately comment on it,” the minister said earlier.
“airBaltic” transported a total of 4.536 million passengers in 2023, which is 35.7% more than in 2022, and made 44,100 flights, which is 18.3% more than the year before.
The audited turnover of “airBaltic” in 2023 amounted to 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, in contrast to losses the year before.
The Latvian state owns 97.97% of “airBaltic” shares, while “Aircraft Leasing 1” owned by financial investor, Danish businessman Lars Tūsen – 2.03%.