Estonia, Lithuania Consider Buying Stake in airBaltic
The Estonian government is set to begin formal discussions on July 3, 2025, regarding Latvia’s proposal for Estonia and Lithuania to acquire a financial stake in airBaltic. This follows the announcement on June 30 that Germany’s Bundeskartellamt approved Lufthansa Group’s acquisition of up to 10% in the Latvian airline for €14 million. Latvia’s Ministry of Transport has confirmed that Estonia and Lithuania received identical offers to match Lufthansa’s investment under the same conditions.
While Estonia has previously expressed political support for airBaltic, this will be the first time the country seriously considers financial involvement. Lithuanian authorities, meanwhile, have indicated that any participation would require firm commitments from airBaltic, including establishing a base at Vilnius Airport and expanding services from there.
Latvian officials have reportedly held closed-door sessions with Estonia to discuss the strategic future of airBaltic. The outcome of these talks could influence regional cooperation, with airBaltic focusing on profitability and the development of its Riga Airport hub, rather than pursuing expansion into foreign markets.
Latvian Minister of Transport Atis Švinka emphasized that the opportunity to buy into airBaltic will remain open only until the planned IPO. After that, investment would be possible only through the public market. Lufthansa’s 10% stake includes additional decision-making rights, a model that Estonia and Lithuania may also seek if they proceed with the offer.
Lufthansa’s investment builds on a broader partnership between the two airlines, including an expanded wet-lease agreement under which Lufthansa leases aircraft and crews from airBaltic. This cooperation likely influenced the approval of the minority stake by German regulators. Since the deal does not grant Lufthansa control of airBaltic, the European Commission does not need to be involved in the merger review process, unlike the previous Lufthansa acquisition of ITA Airways.
Latvian Prime Minister Kristen Michal expressed a favorable view of airBaltic, calling it a solid company from Estonia’s perspective. He noted that the full proposal would be reviewed by Estonia’s government during the July 3 meeting, after which a detailed explanation of the decision will be shared with the public.
The discussions represent a significant step toward greater regional ownership and collaboration in the Baltic aviation sector. If Estonia and Lithuania join Lufthansa in taking minority stakes, it would solidify airBaltic’s position as a pan-Baltic carrier with strategic partnerships across northern and central Europe, further enhancing connectivity and regional economic integration.
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