Latvian flag carrier airBaltic has announced a major leadership transition following a decision by the airline’s regular Shareholders’ Meeting. Longtime Chief Executive Officer Martin Gauss is leaving the airline effective immediately. Gauss spent the last 14 years at the helm of the airline.
airBaltic is Searching for a New CEO
This is a major shakeup and one that I can’t say I saw coming. Unlike Spirit’s CEO stepping down, which took longer than expected, airBaltic’s issues were largely out of its control and by all accounts the company was performing well given the circumstances.
The flag carrier of Latvia has faced some struggles due to the Pratt & Whitney engine issues on its Airbus A220 fleet and with restrictions on flying between the EU and Russia, which was a large part of the carrier’s business prior to Russia’s invasion of Ukraine. Gauss negotiated wet-lease deals with multiple European carriers, including SWISS and Lufthansa, in order to keep planes flying due to the interruptions.
The Latvian government is the majority shareholder of the airline and, with plans to take the carrier public via an IPO on the horizon, apparently determines that they needed to head in a different direction. The government currently owns 98% of the carrier though Lufthansa Group has plans to take a 10% stake in the airline.
In a statement, Supervisory Board Chairman Andrejs Martinovs, praised Gauss’s contributions stating:
“On behalf of the Supervisory Board and the entire airBaltic team, I extend our sincere gratitude to Martin Gauss for his leadership, dedication, and vision since 2011. For more than a decade, Martin Gauss guided the company through significant transformation and growth, laying a strong foundation for its future.”
Effective immediately, current Chief Operations Officer Pauls Cālītis will serve as Interim CEO. Cālītis brings three decades of experience with the airline, having started as a pilot in 1995 and later rising through senior leadership positions. He joined the Management Board in 2020. Chief Financial Officer Vitolds Jakovļevs will remain in his current role on the Management Board.
Upon his promotion to Interim CEO, Cālītis said:
“airBaltic continues its operations with unwavering commitment to achieving its strategic goals. The company’s operational performance will remain unaffected. Our team is strong and motivated, and we are fully prepared to ensure stability, continuity, and further development.”
The company confirmed that its daily operations and long-term strategic plans, including a potential IPO, will proceed without disruption.
Summary
Martin Gauss is out as the CEO of airBaltic after 14 years at the helm. The airline, which is majority owned by the Latvian government, is heading in a new direction as it prepares the airline for an IPO. By all accounts, Gauss seemed like a competent leader and oversaw significant growth at the carrier. I’m sure another airline will snatch him up soon.
