Latvia has offered Estonia and Lithuania the opportunity to purchase shares in its national airline airBaltic under the same terms as the German carrier Lufthansa, Latvian Minister of Transport Atis Švinka told Estonian public broadcaster ETV.
“Lufthansa has decided to invest 14 million euros and become a strategic partner. We are offering Estonia and Lithuania the chance to purchase shares on the same terms. We await their response,” Švinka stated in the “Aktuaalne kaamera” news program.
While the specific content of the offer remains classified, as it was discussed in a closed session of the Latvian government, the move signals an effort to regionalize ownership of airBaltic.
Earlier this week, Germany’s Federal Cartel Office gave Lufthansa the green light to acquire 10% of airBaltic shares. According to airBaltic Supervisory Board Chairman Andrejs Martinovs, the transaction is expected to close within two months.
Under the agreement: Lufthansa Group will acquire at least 5% of airBaltic after its planned initial public offering (IPO), depending on market pricing. The Latvian government will retain at least 25% plus one share after the IPO to maintain control.
Currently the Latvian state owns 97.97% of airBaltic shares,
Danish investor Lars Thuesen’s company Aircraft Leasing 1 holds 2.03%.
In 2024, airBaltic reported audited losses of 118.2 million euros, following a profitable year in 2023. A revenue increase of 11.9%, reaching 747.6 million euros. A passenger count of 5.2 million – 13% more than the previous year. A 7% increase in flights, reaching 47,000 total operations.
If Estonia and Lithuania accept the offer, the deal could pave the way for regional co-ownership of the flagship carrier – a move with economic, strategic, and symbolic significance for the Baltic states.
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