Posted on: 13 December 2011 by Ross McSweeny
The Latvian government has agreed to a capital increase for airBaltic to enable the future development of the carrier and its fleet modernisation.
Martin Gauss, chief executive officer of airBaltic, commented, “airBaltic presented three development scenarios to the government. The decision taken by the government enables airBaltic to stabilise and restructure the business, in order to grow in the future. airBaltic is currently finalising a detailed business plan that includes fleet modernisation and network adjustment.”
The Cabinet of Ministers approved a capital increase by LVL 57.6 million. As part of the plan presented to the government, airBaltic will modernise its fleet to operate two types of aircraft – Bombardier Q400 Next Gen turboprops and either Airbus 320 or Boeing 737 narrowbodies. The final operational fleet will consist of 24 aircraft in 2012. The modernised fleet says airBaltic will allow it to operate more efficiently and retain focus on affordable tickets to Europe, Middle East, Russia/CIS, and increase flight frequencies to the highly demanded destinations.