In December last year airBaltic changed its Internet Booking Engine. Doing so, we almost doubled the number of tickets sold via this channel within a single month. This again showed how important this easy-touse tool has become for our customers. Today, we sell around 50% of all our tickets on the Internet - and we expect this number to increase. Also airport check-in via the Internet, introduced for airBaltic passengers just a short while ago, has turned out to be a success. Already some 10% of our passengers in the Baltic countries use this opportunity.

Some weeks ago we changed both the design and functionality of our Internet Booking once again, making it easier and faster for you to book your flights. This time we have also included new features - booking of rental cars in Riga, Vilnius, and Kiev has been integrated into the flight reservation process; booking of hotels for all airBaltic destinations has been added to ticket reservations. These are only two more steps into the direction of offering you a full travel package on our website. More and more travellers - business or holiday - are getting accustomed to plan and book their trips online. Today you can book your flight, hotel, rental car, and travel insurance on our webpage. And we are working on solutions to give you more opportunities, as well as to make it more convenient.

Our car-rental package, offered on our webpage, has been successful because we provide you with the best possible deals economically: we have the lowest prices in the Baltic States. And it is fast and easy to book. This service will soon be expanded, offering also higher-end models, and also some of the most economical ones. A further step, soon to come, will be to offer you package deals that include both hotel-nights and flights, where the price for the air ticket will be reduced, in some cases even cancelled entirely, if you book a hotel. So, you book a hotel and fly for free - this will be the deal!

Booking a flight via Internet has one additional advantage. Not only is it cheaper for you, it is also less costly for us to handle than other bookings. In order to let you take advantage of this cost differential, we have decided to further decrease prices for all airBaltic tickets booked via our website by 1.0 LVL (1.30 Euro). At the same time we will increase prices for all other tickets by 2.0 LVL (2.60 Euro). This new routine will start at the beginning of January 2008. Later this year, in May 2008, traditional paper-tickets will be replaced by electronic tickets. This will happen world-wide, and involve practically all regular air carriers. In airBaltic we are ready for this change, offering you airBaltic electronic ticketing for all airBaltic flights as well as flights of our partner airlines.

Have a good flight!

Bertolt Flick
President and CEO