Airport, Latvia, Transport

The ministry explains that the losses were due to airBaltic business model that was inadequate for the existing market situation, plus a number of lawsuits involving the airline also had a negative affect on the company's performance in 2011, writes LETA.

The Transport Ministry emphasizes that, thanks to restructuring measures and funding provided by the airline's shareholders, airBaltic was able to overcome the worst crisis in its history already at the end of 2011. In the first quarter of 2012, the airline's management in cooperation with international business and aviation experts developed a new five-year business plan for the airline. The new business plan provides for further development of the airline, modernization of airBaltic fleet, optimization of costs, improving efficiency of the airline's operations, and improvements to the network of the airline's destinations – 27 specific improvements in 14 areas altogether.

With the help of the new business plan, the company is planning consolidation of LVL 330 million within five years. airBaltic management hopes to make the airline profitable already in 2014. airBaltic restructuring process is expected to improve the airline's financial results already this year, reducing the airline's losses to LVL 38 million.

The Transport Ministry informs that airBaltic fleet modernization and switching to the new-generation Bombardier CS300 aircraft will reduce costs and make the airline much more effective, as well as offer more flights to the most popular airBaltic destinations.