Toomas Peterson: Estonians should forget the idea of investing in airBaltic

Former Estonian Air CEO and European Civil Aviation Association vice president Toomas Peterson explains why Estonia should not invest in airBaltic. According to him, the Latvian national airline's business model is questionable in the long term, and the existing problems run too deep.

Former Estonian Air CEO and European Civil Aviation Association vice president Toomas Peterson believes that Estonians should abandon the idea of investing in the Latvian national airline airBaltic. According to Peterson, airBaltic's trajectory in recent years resembles the road to Calvary from the Bible — full of suffering, but with hope of rising again one day.

Is the business model sustainable?

The question is no longer merely whether airBaltic can restore profitability. According to Peterson, what matters more is whether the airline's current business model can survive in the long term and who will ultimately be willing to pay for this journey. These are questions that should be answered when making an investment decision.

Better alternatives await

Peterson emphasises that Estonians have more sensible investment options than airBaltic. The aviation sector is generally capital-intensive and cyclical in nature, which is why any investment in it requires careful consideration. In airBaltic's case, company-specific problems are added to the usual risks, making the investment particularly questionable.

Peterson's opinion carries particular weight given his background — he has led one of Estonia's most important aviation companies and has extensive experience in European civil aviation. His message to Estonians is clear: instead of investing in airBaltic, it is worth looking elsewhere for better opportunities.