Latvia offers Estonia stake in airBaltic matching terms offered to Lufthansa

An airBaltic jet at Tallinn Airport. Source: Priit Mürk/ERR

The Estonian government will on Thursday begin discussions on a proposal from Latvia’s Ministry of Transport to acquire a stake in the airline airBaltic. Both Estonia and Lithuania are expected to contribute under the same conditions as the Lufthansa Group, but the parties are not disclosing the details of the offer ahead of the meeting.

Latvia’s Ministry of Transport confirmed to “Aktuaalne kaamera” that both Estonia and Lithuania have received a formal offer to acquire a stake in airBaltic. Lithuanian officials have previously stated that any agreement would require a firm deal regarding either a base in Vilnius or flight operations.

The exact contents of Latvia’s offer have not been made public. The Latvian government discussed involving neighboring countries during a closed session. It was also decided that airBaltic would abandon plans to expand into foreign markets and instead focus on profitability and the development of Riga Airport.

“Lufthansa has decided to invest €14 million and become a strategic partner. We’re offering Estonia and Lithuania the same terms and are awaiting their response. The next opportunity would be to join through the IPO. We’ve made it clear that airBaltic must bring in private capital,” said Latvian Minister of Transport Atis Švinka.

Estonian leaders have so far offered airBaltic political support, but not financial backing.

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