
Lufthansa Group acquires ten percent stake in Air Baltic
The Lufthansa Group has signed an agreement to acquire convertible shares corresponding to a ten percent stake in the Latvian airline Air Baltic. The purchase price is 14 million euros. In addition, the Lufthansa Group will receive a seat on the supervisory board of Air Baltic. The convertible shares will be converted into ordinary shares in the event of a potential IPO of Air Baltic. The level of participation will then be determined by the market price of the IPO, with the Lufthansa Group's share being at least five percent. This transaction builds on the existing wet lease agreement between the Lufthansa Group and Air Baltic and is intended to strengthen Air Baltic as a strategic partner of the Lufthansa Group. The expanded cooperation will enable the Lufthansa Group to expand its route network and open up new markets. In addition, further development of wet lease services in line with customer needs is planned. The transaction is scheduled to be completed in the second quarter of this year, subject to antitrust review. The wet lease agreement between the Lufthansa Group and Air Baltic was recently extended for a further three years. This agreement makes it possible to deploy up to 21 additional Airbus A220-300 aircraft in the summer and five aircraft of this type in the winter at various Lufthansa Group hubs. This enables the Lufthansa Group to respond more flexibly to seasonal demand. With Air Baltic's additional capacity, it will be possible to serve high-demand destinations in the route network more flexibly in the future. At the same time, the stability and quality of connections to intercontinental services will be improved at the Lufthansa Group hubs. Air Baltic is Latvia's largest airline, based in Riga.