Estonia Rejects airBaltic Stake Offer Over Financial Concerns

The Estonian government has declined an offer to acquire a minority stake in airBaltic, citing uncertainty about the airline’s financial outlook. The proposal, submitted by Latvia’s Ministry of Transport, offered Estonia up to a 10% stake in airBaltic for EUR 14 million (USD 16.5 million), mirroring terms previously extended to both Lithuania and Lufthansa Group.

“We received an offer from Latvia to invest in airBaltic, but due to financial uncertainties, we chose not to proceed,” said Estonian Minister of Infrastructure Kuldar Leis, during a press conference covered by ERR, Estonia’s public broadcaster.

While Estonia opted out of the investment, it reaffirmed support for airBaltic’s operations at Tallinn Lennart Meri Airport. As an incentive, Estonia offered to freeze airport fees for several years, a move aimed at supporting all carriers at the airport. AirBaltic is currently the largest airline at Tallinn, accounting for 38.1% of departure capacity, according to ch-aviation data.

Leis explained that both Estonia and Lithuania were given two options: purchase the stake outright in July 2025 or acquire shares during airBaltic’s anticipated IPO. However, the IPO’s uncertain timeline made long-term investment planning difficult for Estonia.

Lithuania has yet to respond formally to the offer from Latvia. Lufthansa previously accepted the terms and acquired a 10% stake in airBaltic in January 2025, positioning itself as a strategic partner in the airline’s growth.

The decision leaves Latvia as the majority shareholder, continuing efforts to strengthen airBaltic’s regional presence and financial stability.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com