The history of LGS dates back to September 19, 1991 when the Ministry of Transport issued the ordinance on liquidation of Latvian Civil Aviation Board and on dividing the Board into independent state-owned enterprises. It was decided to set up an airline, airport, air navigation service and airport construction enterprise.
As a result, on October 21, 1991 the state-owned enterprise “Latvijas gaisa satiksme” (hereinafter LGS) was filed in the Enterprise Register of the Republic of Latvia now operating among most progressive and advanced European companies in air navigation. Alexander Okladnikov was CEO of the company from the day of the foundation till 2000.
The starting foundation capital of the company was comparatively small amounting to 10 million 100 hundred roubles or 0.05 million Latvian Lats (LVL). Yet from the very first year the company's top priority was investment into staff training, technologies, technical equipment and reconstruction of premises. Already in 1991 LGS installed radio-navigation system VOR/DME (Alcatel , Germany) in Riga and in 1992 -in Liepâja.
Pursuance of high quality standards were strictly respected by LGS and yielded respective annual returns. Already in 1992 LGS earned profit of 1.2 million Lats.
Significant changes happening to control and the general jurisdiction of Latvian air space in 1992 affected LGS as well. Trilateral negotiations between representatives of the Ministry of Defence of the Republic of Latvia, Ministry of Defence of the Russian Federation and the state enterprise LGS were held to discuss national air space safety issues regarding withdrawal of the armed forces of the Russian Federation from the territory of Latvia.
Moving on, LGS mailed a technical modernisation plan to the Ministry of Defence which was developed within the framework of the joint concept of the Ministry of Transport and Ministry of Defence “On Establishment and Modernisation of the National System of Air Space Control and Air Space Utilisation of the Republic of Latvia”.
