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German regulator approves Lufthansa Group's minority stake in airBaltic

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Pilotcenter.net

Pilotcenter.net News reported on June 30, 2025, that the German competition authority, the Bundeskartellamt, has given the green light for Deutsche Lufthansa AG (the Lufthansa Group) to acquire a minority stake in the Latvian-based carrier airBaltic Corporation AS. This move comes after years of a successful wet-lease partnership between the two airlines. The Lufthansa Group's European expansion strategy seems to be continuing as they solidify their ties with airBaltic.

According to a statement from the Bundeskartellamt, the minority stake of 10% grants Lufthansa Group additional rights to participate in airBaltic’s decision-making processes. The close alignment and successful wet-lease cooperation between the two carriers played a significant role in this decision. The statement highlighted the importance of the lease payments made by Lufthansa to airBaltic, indicating that this partnership is mutually beneficial.

Andreas Mundt, the president of the Bundeskartellamt, acknowledged potential competition concerns regarding certain flight connections between German airports and the Baltic states due to the merger. Despite this, the merger was approved as the affected routes were classified as minor markets with low domestic sales volumes, falling below the threshold for intervention by the competition authority.

The regulatory body concluded that there were sufficient alternative wet-lease providers for Lufthansa beyond airBaltic, ensuring no competitive issues would arise from their ongoing agreement. It was also highlighted that the 10% stake acquired by Lufthansa did not constitute significant control over airBaltic, therefore the merger fell under German merger control rather than European jurisdiction.

Looking ahead, if Lufthansa decides to increase its stake in airBaltic in the future, triggering a change in control, a new round of merger control evaluations may be necessary, possibly involving the European Commission. This process would involve a thorough assessment of the competition impact, similar to what was undertaken during Lufthansa's acquisition of ITA Airways in 2024.

The unfolding partnership between Lufthansa and airBaltic signifies a strategic move within the European aviation landscape, with both airlines poised to benefit from their continued collaboration.

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