airBaltic has presented a development plan to the Cabinet of Ministers, which recommends the government helps the airline to optimize its fleet and network of destinations to prevent a critical reduction in the airline's business. airBaltic predicts that such a strategy would decrease passenger turnover by 8% in 2012 but it would be able to retain its leading positions in the Baltic regions and pursue expansion later on, if necessary. The further development of the Riga Airport as a regional transit hub would also benefit from such a strategy. The plan also indicates that should the government implement this scenario, the airline would be more attractive to strategic investors.
The government will vote today on increasing airBaltic share capital, which the airline's shareholders will consider in a meeting on December 22.
airBaltic submits development plan to ministers
