Lufthansa Cleared to Buy 10% Stake in airBaltic

Germany’s competition authority, the Bundeskartellamt, has approved Deutsche Lufthansa AG’s acquisition of a 10% minority stake in Latvian carrier airBaltic. Announced on June 30, 2025, the decision paves the way for Lufthansa to deepen its influence in the Baltic aviation market and expand its European airline portfolio.

Though the stake is non-controlling, the Bundeskartellamt noted that Lufthansa will gain additional decision-making rights within airBaltic. The airlines have already been closely aligned through an ongoing wet-lease agreement, under which airBaltic provides aircraft and crew for Lufthansa Group operations. This partnership was significantly expanded in 2024 and played a key role in justifying the transaction.

Lufthansa’s lease payments are considered strategically important to airBaltic’s business, giving the German carrier material competitive influence. According to the regulator, Lufthansa’s interests will likely be considered in airBaltic’s key decisions going forward.

Despite this close alignment, both airlines will remain legally separate entities, and any coordination on pricing or anti-competitive practices will continue to be prohibited. The Bundeskartellamt confirmed that it will retain oversight of potential cartel behavior and will act if necessary.

Bundeskartellamt President Andreas Mundt acknowledged that the deal raises competition concerns on some routes between Germany and the Baltic states, where Lufthansa and airBaltic are direct rivals and alternative carriers are limited. However, the authority was unable to block the deal under German law because the affected routes fall under the “minor market” threshold—defined as having domestic sales volumes of less than €20 million.

The merger review also confirmed that the wet-lease arrangement itself poses no threat to competition, citing the availability of other wet-lease providers Lufthansa could use if needed.

The deal falls under German—not European—merger control rules because Lufthansa is acquiring only a minority stake without full control. However, if Lufthansa increases its shareholding in airBaltic in the future, the European Commission could launch a full competition review similar to its previous assessment of Lufthansa’s 2024 takeover of ITA Airways.

The airBaltic investment is the latest step in Lufthansa Group’s strategic consolidation across Europe, as the group continues to grow its network and influence in regional aviation markets.

Related News : https://airguide.info/?s=Lufthansa