The Latvian government has approved a capital increase for its national carrier, amid plans to cut its fleet.
Air Baltic will use part of the LVL 57.6 million (£70 million) funding to modernise its fleet.
Martin Gauss, the airline’s CEO, said the government’s decision “enables Air Baltic to stabilise and restructure the business, in order to grow into the future”.
The carrier is “currently finalising a detailed business plan that includes fleet modernisation and network adjustment,” he added.
The fleet modernisation plans, which will “allow the airline to operate more efficiently and retain focus on affordable tickets” appear to include a cut in the number of aircraft that the airline operates.
Air Baltic currently has a fleet of 34 planes, including six B737-500, eight B737-300, two B757-200 , 10 Fokker 50s and 8 Bombardier Q400 Next Gen aircraft.
As part of the plan presented to the Latvian government, however, the airline said it would change to operating 24 aircraft in 2012.
In addition, it said it would fly just two types of aircraft – the existing Bombardier model and either A320s or new generation B737s.
In terms of its route network, Air Baltic said it plans to focus on Europe, the Middle East, Russia and former Soviet states such as Ukraine.
It currently flies to more than 60 airports from its Riga hub to destinations in the above regions, plus Scandinavia.