Pilotcenter.net News has revealed that talks are set to commence between the Estonian government and Latvia’s Ministry of Transport regarding a potential financial investment in airBaltic, the Latvian airline. Following the recent approval by the German competition authority for Lufthansa Group to secure a 10% minority stake in airBaltic for €14 million, both Estonia and Lithuania are expected to join as stakeholders under similar conditions. While specifics of the proposed transactions are yet to be unveiled, the aim is for airBaltic to expand its operations, including establishing a base at Vilnius Airport.

Latvia’s Ministry of Transport has extended formal offers to Estonia and Lithuania to participate in the acquisition of stakes in airBaltic. The strategic move by Lufthansa Group to invest in airBaltic has paved the way for other potential partners to participate, with the option for further involvement through an IPO. Minister of Transport Atis Švinka emphasized the necessity for private capital infusion into the airline. The plan to focus on profitability and the development of Riga Airport has been outlined, signaling a shift in strategy for airBaltic.

While Estonia has historically shown political support for airBaltic, the financial commitment in the form of a stakeholding is a new frontier. Latvia’s Prime Minister expressed optimism about the prospects of airBaltic and the pending discussions to be held. The 10% stake accorded to Lufthansa Group comes with additional decision-making rights, a feature that any interested party would likely seek to secure in any future deals. The close partnership between airBaltic and Lufthansa, evident in their wet-lease cooperation agreement, has bolstered the rationale for the proposed acquisition.

The alignment of interests between the two carriers has facilitated the progress of the stake purchase, especially with Lufthansa’s intention to avoid triggering significant control over airBaltic that would involve EU competition authorities. The upcoming discussions represent a pivotal moment in elevating airBaltic’s standing in the aviation industry, with the potential for enhanced cooperation and growth on the horizon.