Lufthansa Group is reportedly evaluating buying a stake in airBaltic (BT, Riga) as a part of the latter's planned privatisation, Bloomberg has written, citing what it called informed but anonymous sources.
The discussions are at an early stage and no decisions have been made just yet. Both carriers refused to comment on the report.
The Latvian airline is planning an IPO to raise around EUR300 million euros (USD333 million) in fresh capital. The Latvian government, which currently owns a 97.97% stake in the airline, plans to retain 25% of the post-listing shares. Minister of Economy Viktors Valainis recently said that an unnamed "well-known investor" was interested in the airline. The IPO is tentatively planned for late 2024 or early 2025.
The Latvian airline cooperates extensively with Lufthansa Group carriers as an ACMI provider. It currently operates five A220-300s for Eurowings, four for Lufthansa, and nine for Swiss. It recently announced plans to open crew bases at Brussels National, Munich, and Vienna - all Lufthansa Group hubs - coinciding with Lufthansa's disclosure of plans to seek a strategic long-term ACMI partner. airBaltic's total fleet consists of forty-eight A220-300s, with 42 due direct from the manufacturer.
Lufthansa Group currently wholly owns Lufthansa, Swiss, Austrian Airlines, Brussels Airlines, Eurowings, Discover Airlines, Air Dolomiti, Lufthansa Cargo, Lufthansa City Airlines, and Lufthansa CityLine. It holds a 50% stake in AeroLogic, a cargo joint venture with DHL Express, a 41% stake in ITA Airways, and a 40% stake in SunExpress, a joint venture with Turkish Airlines.
