Air Baltic to undergo capital injection

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Latvia's Air Baltic is to undergo a capital increase of Ls30 million ($56.5 million) sourced from its main shareholders.

The Latvian Government holds 52.6% of the flag-carrier while the other main shareholder, Baltijas Aviacijas Sistemas, has 47.2%.

Latvia's transport ministry says the shareholders will provide the capital injection "in proportion" to their stakes.

It adds that the state's funding will come from the country's television and radio communications provider.

Air Baltic's "rapid progress" and profitability have encouraged the decision, says the ministry. The carrier is undertaking a rapid expansion and reinforcing its presence across all three Baltic states.