The airline was established on twenty eight August 1995 with the signing of a joint venture between Scandinavian Airlines (SAS) and also the Latvian state. Operations started on one October 1995 with the arrival of the primary Air Baltic aircraft, a Saab 340, at Riga, which afternoon, the plane created the primary passenger flight for Air Baltic.
In 1996, the airline‘s 1st Avro RJ70 was delivered; and Air Baltic joined the SAS frequent flier club as a partner. 1997 saw the gap of a cargo department and, in 1998, the airline’s 1st Fokker fifty plane was delivered. The adopted livery was mainly white, with the name of the airline written in blue on the forward fuselage, the ‘B‘ brand being heavily stylized in blue checks. The checker blue pattern was repeated on the aircraft tailfin.
In 1999, Air Baltic became a joint stock company, and every one of their Saab 340s were replaced by Fokker 50s. By September, the airline had begun operating below the eu Aviation Operating Standards, or JAR ops. Air Baltic welcomed the new millennium by introducing new uniforms and gap a cargo center at Riga’s airport.