BALTIA AIR LINES, INC. (OTCMKTS:BLTA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers

Appointment of Felix Malitsky as a Director

On March 20, 2017, the Board of Directors (the Board) of Baltia
Air Lines, Inc. (the Company) appointed Felix Malitsky as a
director of the Company.

Mr. Malitsky has over 15 years of experience in the financial
services industry. He is the President and Managing Director of
Fortis Lux Financial, a wealth management firm, which he founded
in 2016. From 2001 until 2010, Mr. Malitsky was a financial
advisor with American Express, his latest position as Complex
Director of the New York metropolitan area. In 2010, Mr. Malitsky
joined MetLife as Managing Director of MetLife Premier Client
Group in New York. During his tenure at MetLife, Mr. Malitskys
team was awarded Chairman Status for four consecutive years and
Leader Conference in 2015 from the firm. Mr. Malitsky is a
Chartered Retirement Planning Counselor. He earned a B.A. in
history from the University of Connecticut and served in the
United States Army. Mr. Mr. Malitsky is affiliated with
charitable organizations such as the Wounded Warrior Project, the
Gift of Life Foundation and Beat the Streets. The Company
believes Mr. Malitskys extensive investment and business
experience make him a qualified appointee as director.

No family relationships exist between Mr. Malitsky and any of the
Companys other directors or executive officers. There are no
arrangements between Mr. Malitsky and any other person to which
Mr. Malitsky was nominated as a director. There are no
transactions to which the Company is or was a participant and in
which Mr. Malitsky has a material interest subject to disclosure
under Item 404(a) of Regulation S-K. Mr. Malitsky is not a party
to any material plan or arrangement in connection with his
appointment as a director.

Appointment of Sheryle Milligan as Chief Operating
Officer

On March 20, 2017, the Board appointed Sheryle Milligan as Chief
Operating Officer of the Company. Ms. Milligan joined the Company
in 2013 and prior to her appointment as COO, Ms. Milligan was
serving as the Chief of Operations, Director of Safety and
Certification Project Manager for the Companys Federal Aviation
Administration (FAA) certification.

Ms. Milligan began her career in aviation in 1984 when she joined
Chrysler Pentastar Aviation, Inc., where she was responsible for
integrating critical safety procedures and maintaining regulatory
compliance through 2002. Since then, she has worked with various
airlines to achieve regulatory compliance with the FAA as well as
multiple foreign state agencies, including the Canadian
Transportation Authority and the Civil Aviation Authority in
Europe. In addition, Ms. Milligan has worked with major aircraft
manufacturers, including Gulfstream Aerospace Corporation, Airbus
Group SE and The Boeing Company to participate in certification
efforts on behalf of such air carrier certification applicants.
In 2009, Ms. Milligan launched SMS SOS, LLC (Safety Management
Systems and Specialized Operational Services) to provide the
aviation industry with a team of experts specializing in safety
management systems, air carrier certification, regulatory
compliance, quality control and quality assurance. In 2011, Ms.
Milligan received an acknowledgement from the FAA for her role in
leading a complex air carrier through the FAA Voluntary SMS Level
1 Process.

Ms. Milligan holds a B.S. in Business Management from Atworth
University. She continues to attend industry programs and
trainings, including FAA SMS Pilot Program Calibration/Training,
ATOS Oversight Training, FAA System Safety Training, Crew
Resource Management Training, ISO/QS 9000 Documentation, ISO 9000
Executive Overview Course, QS 9000 Implementation along with
various other 135/121 compliance related programs. For 15 years,
Ms. Milligan was a member of the FAA Safety Management System
Focus Group and the FAA Pilot Program for Safety Management
Systems, where she provided input to the development of Part 5
Safety Management Systems of the Title 14: Aeronautics and Space
federal regulations. In addition, Ms. Milligan served on the
Safety and Security Committees of the National Air Transportation
Association and the National Business Aviation Association. From
2008 to 2009, Ms. Milligan served on the Board of Governors of
the Air Charter Safety Foundation.

No family relationships exist between Ms. Milligan and any of the
Companys other directors or executive officers. There are no
arrangements between Ms. Milligan and any other person to which
Ms. Milligan was appointed as an officer of the Company. There
are no transactions to which the Company is or was a participant
and in which Ms. Milligan has a material interest subject to
disclosure under Item 404(a) of Regulation S-K.

In connection with her employment with the Company, Ms. Milligan
entered into an employment agreement (the Agreement) on July 8,
2016, to which she receives an annual base salary of $127,400,
subject to increase to $200,000 upon the Companys receipt of FAA
certification and authorization to commence revenue-generating
flights. Ms. Milligan will be entitled to receive reimbursement
for all reasonable expenses incurred in connection with
business-related activities. She is also entitled to customary
medical benefits and certain disabilities insurance. Ms.
Milligans employment agreement provides for a term ending on July
7, 2017, which shall automatically renew for subsequent one year
terms unless otherwise terminated as provided in the Agreement.
In the event that the Company and Ms. Milligan terminate her
employment based upon mutual agreement, or in the event that the
Company terminates Ms. Milligan for cause, as such term is
defined in the Agreement, the Company shall be obligated to pay
Ms. Milligan (i) any portion of her unpaid salary, (ii) the value
of all compensation and benefits, whether accrued or unaccrued,
for the remainder of the term, (iii) any unused benefits under an
and all benefit plans through the date of such termination
(together, the Earned Amounts). In the event that the Company
terminates Ms. Milligans employment without Cause, as such term
is defined in the Agreement, or if Ms. Milligan voluntarily
elects to terminate her employment, the Company shall pay to Ms.
Milligan the Earned Amounts and the Company shall accelerate the
vesting of any stock, stock options, restricted stock awards,
long term incentive plan benefits and any other equity awards or
benefits subject to vesting that were granted or owed to Ms.
Milligan during the term. In addition, Ms. Milligan will be
entitled to receive any vested stock grants, cash incentives or
bonuses that she may have earned prior to the date of
termination; and, Ms. Milligan shall be entitled to request that
the Company repurchase all equity interest of the Company she
owns or holds at a price equal to the greater of (i) $0.02 per
share of the common stock of the Company, and (iii) fair market
value. In the event that Company experiences a Change in Control,
as such term is defined in the Agreement, the Company shall pay
to Ms. Milligan, within 30 days of such Change in Control, a cash
payment equal to three time the amount of her then applicable
base salary. In addition, at Ms. Milligans request, the Company
shall repurchase all equity interest of the Company Ms. Milligan
owns or holds at a price equal to the greater of (i) $0.02 per
share of the common stock of the Company, and (iii) fair market
value. Upon a Change in Control, all equity or equity equivalents
held or owned by Ms. Milligan that are subject to vesting based
on her continued employment shall automatically vest or become
unrestricted and/or exercisable, as applicable. Ms. Milligan is
entitled to continue receiving certain medical benefits for a
period of one year after the date of the Change of Control, or
the remainder of her employment term, whichever is longer.

A copy of the Agreement is filed as Exhibit 10.1 to this Current
Report on Form 8-K and is incorporated herein by reference. The
description of the material terms of the Employment Agreement
contained in this Item 5.02 is qualified in its entirety by
reference to Exhibit 10.1.

Item 9.01. Exhibits

About BALTIA AIR LINES, INC. (OTCMKTS:BLTA)

Baltia Air Lines, Inc. (Baltia) is a development-stage company. The Company provides scheduled air transportation from the United States to Russia, the Baltic States and the Ukraine. Baltia is in Phase III of the FAA Air Carrier Certification. The Company has two trademarks: Baltia and Voyager Class. Baltia intends to commence scheduled non-stop service from its Base of Operations at Terminal 4, JFK Int’l Airport in New York to Pulkovo II Int’l Airport of St. Petersburg. The Company intends to provide nonstop passenger, cargo and mail service from JFK to St. Petersburg and from JFK to Riga, with online service to Minsk, Kiev and Tbilisi, as well as back up service to Moscow. It intends to operate as a Part 121 carrier, a heavy jet operator. Baltia intends to start the JFK-St. Petersburg service with one round-trip flight per week, then increase the frequency to over three round trips, and then to approximately five round trips.

BALTIA AIR LINES, INC. (OTCMKTS:BLTA) Recent Trading Information

BALTIA AIR LINES, INC. (OTCMKTS:BLTA) closed its last trading session 00.00000 at 0.00500 with 38,069,302 shares trading hands.