Exclusive-AirBaltic in talks with unions to cut workers amid restructuring, CEO says

By Joanna Plucinska

LONDON, Sept 14 (Reuters) - AirBaltic is in talks with labour unions to come to an agreement on an "adjustment in the workforce," Chief Executive Erno Hilden told Reuters on Monday after the Latvian carrier announced it was voluntarily entering Chapter 11 bankruptcy proceedings.

"We are currently carrying out the consultations with the labour unions," Hilden said, adding that with plans to reduce capacity, a change in workforce is a "natural conclusion."

"When all of that is concluded, then it is going to be time to really come up with numbers."

AirBaltic filed for protection under Chapter 11 of the U.S. Bankruptcy Code in New York on Monday as it seeks to restructure its debt pile, head off creditors and survive a deepening sector-wide crisis brought on by the Iran war.

Hilden, previously CFO for Scandinavian Airlines where he steered the firm through a similar bankruptcy process, added that there would be no interruption or change expected to airBaltic's operations during the Chapter 11 proceedings.

He added the biggest changes would involve the carrier's so-called "wet lease" business, where it loans out its planes and crew to other carriers for a fee.

The chairperson of the Latvian aviation union, Dace Kavasa, told Reuters talks were taking place about instituting "alternative employment solutions", including allowing some workers to stay on part-time and it was still unclear how many people would be dismissed. 

"The collective dismissal consultations are ongoing. There are a lot of unknowns. There are still quite serious disagreements on the objectivity of some proposed criteria," Kavasa said, adding that they were hoping for some constructive decisions by the end of the week. 

(Reporting by Joanna Plucinska; Editing by Adam Jourdan and Susan Fenton)