Latvia's government has approved a Ls57.6 million ($108.2 million) capital increase for Air Baltic to enable the carrier to update its fleet.
Air Baltic will use the money to streamline its fleet to two aircraft types - the Bombardier Q400 Next Gen and either the Airbus A320 or Boeing 737. The airline aims to operate 24 aircraft in 2012. Its current fleet consists of 34 aircraft, including six 737-500s, eight 737-300s, two Boeing 757-200s, 10 Fokker 50s and eight Q400s.
"The decision taken today by the government enables Air Baltic to stabilise and restructure the business, in order to grow in the future," said Air Baltic chief executive Martin Gauss.
"Air Baltic is currently finalising a detailed business plan that includes fleet modernisation and network adjustment."