Deutsche Lufthansa AG is considering buying a stake in AirBaltic Corp. ahead of the Latvian national airline’s planned initial public offering (IPO), Bloomberg reports. The talks are at an early stage and no investment decision has been made, the publication’s sources said, asking not to be named. airBaltic management had been preparing for an IPO in late 2024, although Chief Executive Martin Gauss said it could happen in the first half of 2025. Lufthansa, like airBaltic, declined to comment to Bloomberg. As reported, Latvia said it intends to retain at least 25% of airBaltic’s shares after the IPO. The Latvian Transport Ministry also declined to comment to the media. The acquisition of airBaltic shares would be in line with Lufthansa’s broader approach to business, which is to invest in national carriers with the option to increase its stake later, Bloomberg notes. Earlier this year, Lufthansa received approval to acquire a 41% stake in Italian airline ITA Airways, the successor to Alitalia, adding to its existing stakes in the Swiss, Belgian and Austrian carriers. Lufthansa’s management is keen to participate in further consolidation of the European aviation market. Earlier this month, CEO Carsten Spohr met with Portuguese government officials as the German group considers investing in state-owned airline TAP SA. The German airline has been cooperating with airBaltic for several years. Earlier this year, Lufthansa’s Swiss unit used airBaltic aircraft for its flights. An unnamed strategic investor is reportedly in talks with airBaltic to acquire a 10% stake in the airline before the public offering.
Bloomberg: Lufthansa Considers Investing in AirBaltic Before IPO
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