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

Martin Gauss, head of Latvian airline Air Baltic, stands in his office with a model airplane in his hand.
Martin Gauss, the CEO of airBaltic.

Alexander Welscher/picture alliance via Getty Images

  • Latvia's airBaltic has been heavily impacted by the war in Ukraine, its CEO Martin Gauss said.
  • He told Business Insider it plans to be the first airline back into Ukraine when the conflict ends.
  • Gauss led airBaltic out of bankruptcy and has spearheaded plans for an IPO next year.

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

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 BI 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 โ€” circumnavigating the airspace," Gauss said.

The airline has more than 70 destinations โ€” including Cyprus, Turkey, and Dubai โ€” 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 BI.

"What makes it so special was that in 2012 [โ€ฆ] 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 โ€” 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.

Air Baltic Airbus A220-300 the former Bombardier CSeries CS300 BD-500 aircraft as seen departing from Amsterdam Schiphol Airport.
AirBaltic is the largest operator of the Airbus A220.

Nicolas Economou/NurPhoto via Getty Images

Today, airBaltic is the largest operator of the type with 48 A220s โ€” 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."

Read the original article on Business Insider

See the Chinese cargo ship suspected of sabotaging critical undersea cables between 4 NATO countries

Chinese bulk carrier Yi Peng 3 is anchored
Chinese bulk carrier Yi Peng 3 is anchored in waters near Denmark as it faces an investigation into suspected sabotage of undersea cables.

Mikkel Berg Pedersen/Ritzau Scanpix/AFP via Getty Images

  • A Chinese cargo ship is under investigation related to severed data cables in the Baltic Sea.
  • A probe found that the vessel steamed ahead while dragging its anchor for over 100 miles.
  • Western officials believe Russia likely orchestrated the attack on EU maritime infrastructure.

Two key undersea data cables in the Baltic Sea were severed earlier this month, prompting an investigation into a Chinese cargo ship for suspected sabotage.

European authorities said the Chinese-flagged bulk carrier, identified as Yi Peng 3, dragged its anchor over the Baltic seabed for over 100 miles, cutting the critical internet cables that link four NATO countries.

A timeline of events
The anchor chain of the Chinese bulk carrier Yi Peng 3 is seen after dropping its anchor.
The Chinese bulk carrier Yi Peng 3 is anchored near Denmark amid an investigation.

Ritzau Scanpix/Mikkel Berg Pedersen via Reuters

On November 15, Yi Peng 3 departed from Russia's Ust-Luga port on the Baltic Sea carrying Russian fertilizer.

The Ust-Luga port is the largest universal port on the Baltic Sea and the Kremlin's second-largest port after Novorossiysk on the Black Sea. Since Sweden and Finland joined the alliance, the Baltic Sea has been referred to as "NATO lake" because it is almost entirely populated by alliance members.

Two days later, investigators established that the Chinese vessel dropped its anchor around 9 p.m. local time, The Wall Street Journal reported Wednesday. However, the ship continued steaming with its anchor dropped and is believed to have severed an undersea telecoms cable connecting Sweden and Lithuania, per The Journal.

Investigators said Yi Peng 3 continued to sail for another 111 miles with its dragging anchor, which then cut the only communications cable connecting Finland with Germany less than twenty-four hours later.

It was only then that investigators said the vessel raised anchor and continued its route.

It's highly unusual for any vessel to drag its anchor for this long due to the dangers and fuel waste, an impediment that cannot go unnoticed by the ship's watch-standers. A crew typically recovers the anchor, or in the worst case, jettisons it, before steaming ahead.

The Chinese bulk carrier is now anchored in the Kattegat Strait and is being monitored by Danish naval patrol vessels as European authorities continue to investigate the potential sabotage.

Concerns of potential sabotage
A view of the stern of Yi Peng 3.
A view of the stern of the Chinese ship, Yi Peng 3.

Ritzau Scanpix/Mikkel Berg Pedersen via Reuters

Investigators said Yi Peng 3's movements couldn't be charted after it went "dark," meaning that the ship's transponder was shut down or disabled, thus obscuring its position.

Open-source satellite imagery, however, reportedly placed the Chinese ship near the damaged cables at the time of the respective incidents.

An investigator on the case told The Journal that it's "extremely unlikely" that the ship's captain wouldn't have noticed the vessel's dragging anchor.

"It's extremely unlikely that the captain would not have noticed that his ship dropped and dragged its anchor, losing speed for hours and cutting cables on the way," the investigator said.

An analysis by Kpler, a global trade analytics firm, provided to The Journal found that "given the mild weather conditions and manageable wave heights, the likelihood of accidental anchor dragging appears minimal."

Germany's Defense Minister Boris Pistorius said he believed the incident was a result of potential sabotage, telling reporters last week that "nobody believes that these cables were accidentally severed."

"We have to know that, without knowing specifically who it came from, that it is a hybrid action, and we also have to assume that, without knowing by whom yet, that this is sabotage," Pistorius said.

Russia accused of waging 'hybrid warfare'
A Danish naval patrol vessel sails near the Chinese cargo ship Yi Peng 3.
A Danish naval patrol vessel sails near the Chinese cargo ship Yi Peng 3.

Ritzau Scanpix/Mikkel Berg Pedersen via Reuters

Yi Peng 3's origin of departure raised concerns over potential Russian involvement in the incident, possibly in connection to the war in Ukraine.

Though the Chinese vessel and associated parties are under investigation over damaged cables, Western officials believe that Russian intelligence agencies orchestrated the incident.

Kremlin spokesman Dmitry Peskov denied Russian involvement, calling the accusations "absurd."

"It's quite absurd to keep blaming Russia for everything without any grounds. It is laughable in the context of the lack of any reaction to Ukraine's sabotage activities in the Baltic Sea," Peskov told reporters on November 20.

Foreign ministers of Finland and Germany released a joint statement on November 18, saying they were "deeply concerned" about the incident, which "immediately raises suspicions of intentional damage [and] speaks volumes about the volatility of our times.

"Our European security is not only under threat from Russia's war of aggression against Ukraine but also from hybrid warfare by malicious actors," the ministers said in the statement. "Safeguarding our shared critical infrastructure is vital to our security and the resilience of our societies."

The incident in the Baltic Sea comes just weeks after US officials warned that Russia would likely target undersea cables and other critical maritime infrastructure.

"We are concerned about heightened Russian naval activity worldwide and that Russia's decision calculus for damaging US and allied undersea critical infrastructure may be changing," a US official told CNN in September.

The official added that "Russia is continuing to develop naval capabilities for undersea sabotage" through its dedicated military unit known as the General Staff Main Directorate for Deep Sea Research, or GUGI.

China complying with the investigation
Chinese cargo ship Yi Peng 3
The Chinese cargo ship was sailing in the Baltic Sea when authorities say its anchor damaged undersea telecoms cables.

Mikkel Berg Pedersen/Ritzau Scanpix/AFP via Getty Images

Denmark's foreign ministry said in a statement earlier this week that investigators were engaged in ongoing "diplomatic dialogue" with the countries "most involved in handling this case, including China."

A Chinese foreign ministry spokesperson confirmed the talks in a statement last Friday, saying Beijing "is currently working with relevant parties, including Denmark, to maintain smooth communication through diplomatic channels."

Chinese company Ningbo Yipeng Shipping, which owns Yi Peng 3, is also cooperating with the probe and allowed the vessel to be stopped while Swedish and German authorities negotiate access to the ship and its crew, The Journal reported.

The vessel's crew, which also includes a Russian sailor, has yet to be questioned due to restrictions under international maritime law.

Read the original article on Business Insider

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