This CEO wants his airline to be the first to start flying to Ukraine again

Martin Gauss, the CEO of airBaltic.

AirBaltic plans to be the first airline to restart flights to Ukraine in the event of a peace agreement, CEO Martin Gauss told B-17.

The Latvian flag carrier also has bases in Estonia and Lithuania. All three countries border Russia and are NATO and the European Union members.

“What I think is an upside now is a potential peace because that’s not priced in for us,” Gauss said in a Monday interview in London.

“That would be a huge upside as we were the last airline out of Ukraine and would be the first one in,” he added.

Gauss told B-17 that the start of the war impacted airBaltic “very heavily” due to missing passenger flows from Ukraine and Russia.

However, he added that tourism to the Baltic countries was no longer suffering as fears had eased about them being invaded by Russia, too.

AirBaltic has still been hampered by airspace restrictions.

“The overflying restrictions are still there and everything which goes southeast is, for us, a detour — circumnavigating the airspace,” Gauss said.

The airline has more than 70 destinations — including Cyprus, Turkey, and Dubai — where the fastest route from Latvia would involve flying over Ukraine.

Finding alternative routes isn’t simple. Gauss explained how flying south from the Baltics, there’s only a “small corridor” between Belarus and the Russian exclave of Kaliningrad.

“Once that is too busy, we need to fly over Sweden into the south,” Gauss added. “So there’s an impact on the cost side.”

AirBaltic’s turnaround

Gauss started his career as a pilot in 1992 with Deutsche BA, then a low-cost subsidiary of British Airways. He then entered management training with the airline and worked his way up.

After developing a reputation for turning around airlines, he was headhunted for airBaltic in 2011. The airline had gone bankrupt, but the Latvian government agreed to invest more capital.

“I had to come up, in a couple of weeks, with suggestions of what you could do with a technically bankrupt airline,” Gauss told B-17.

“What makes it so special was that in 2012 […] we had to make a decision for the future aircraft fleet,” he added. “And we took a decision to go for an aircraft type which didn’t exist at the time — an A220.”

In 2016, AirBaltic became the launch operator of the Airbus A220. It’s a smaller jet with a capacity of 150, but it can still fly farther than the regional aircraft it competes with, such as the Embraer E195.

AirBaltic is the largest operator of the Airbus A220.

Today, airBaltic is the largest operator of the type with 48 A220s — with plans to double that by 2030. Based on order books, Gauss said, “We are the only airline which can double in size in Europe in the next five years.”

Gauss has also promoted new technologies in his time at the helm. AirBaltic accepted bitcoin as payment back in 2014 and has minted NFTs that generate airline loyalty points.

It’s also set to be the first airline in Europe to use Elon Musk’s Starlink internet as soon as it’s certified by the continent’s aviation regulators.

Gauss is pleased with the success of his business model, with preparations underway for an IPO.

“It was intended to do it earliest in the second half of this year, which we canceled because of the market situation, so we said, first opportunity is first half of 2025 for an IPO.”