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Latvia’s national airline airBaltic operates as planned

Riga, 03.10.2001

Following the tragic events of 11 September 2001 in the United States of America, civil aviation worldwide is facing a critical situation.

Latvia’s National Airline airBaltic so far is maintaining the operation of flights without any changes to schedules. airBaltic passenger numbers did not decrease in September. The company’s prognosis until the end of the year shows an increase in passenger numbers compared to the same period in 2000.

Jens Helmø Larsen, airBaltic’s President and CEO commented: “We are closely monitoring the current situation as the industry is facing serious challenges. For the time being airBaltic will operate according to schedules and we are pleased that that passenger numbers have not decreased. Nevertheless, it would be unwise not to evaluate contingencies for the future should the demand for air travel drop, and we have already done this.”

As a result of the terrorist attacks in the USA the insurance industry decreased coverage of third party liability for terrorist and war-like acts to USD 50 million for airlines. This amount was not sufficient since aircraft leasing and other agreements require higher insurance coverage. In order to continue flying airBaltic had to obtain supplementary insurance cover by October 2. Today airBaltic informed all partners that we have successfully signed an additional insurance agreement to provide the necessary coverage and can continue operations uninterrupted.

airBaltic is evaluating fare increases up to 5% to cover the much higher cost of these insurance policies. A number of European airlines have already increased their fares to cover the more expensive insurance premiums.

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