The Latvian government today approved the construction of a new terminal by the Latvian airline airBaltic.

airBaltic president and CEO Bertolt Flick: “The infrastructure of the Riga International Airport has already reached its design capacity limits, and so a new terminal is acutely needed to accomodate the growing passenger numbers.”

airBaltic plans to build a terminal with a floor space of 58,000 m2 – one which will be able to handle up to 15 million passengers a year. Total investments are expected to amount to more than EUR 92 million. Investments will come from the private sector, and the project will require no funding or guarantees from the state. airBaltic will negotiate with the TAV company on the construction and operation of the terminal. The airline is also negotiating with several banks on project financing. Bids for tender on construction and architectural design will be launched in the near term.

The Riga International Airport saw a passenger increase of 10.2% last year and expects a 15% increase this year. airBaltic achieved an increase in passenger numbers by more than 30% at its home base in Riga last year, and earned record profits of EUR 20 million. The per-passenger costs of the new terminal will be among the lowest in Europe.