Russia becomes first country to formally recognise Taliban government in Afghanistan
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Estonia has decided against purchasing a stake in Latvia's flag carrier airBaltic, Infrastructure Minister Kuldar Leis announced on July 3, as the Baltic airline faces ongoing management changes and financial uncertainty, ERR.ee and LSM.lv reported on July 4.
The decision comes despite Latvia's efforts to attract regional investors to strengthen airBaltic's position. The Latvian Ministry of Transport had offered Estonia up to 10% of shares for €14mn ($15.1mn), with similar proposals extended to Lithuania and Germany's Lufthansa Group.
AirBaltic, founded in 1995, serves as a crucial regional connector for the Baltic states, operating over 100 routes across Europe, the Middle East and the Caucasus. The airline has faced financial pressures in recent years, reporting losses and requiring government support during the COVID-19 pandemic.
Despite rejecting the equity offer, Estonia signalled continued support for the carrier through operational incentives. The government committed to maintaining current airport fees for airBaltic until 2030, providing financial predictability for the airline's Estonian operations.
The carrier represents a significant portion of Estonia's aviation sector, accounting for approximately 30% of passenger traffic at Tallinn Airport. AirBaltic's Estonian routes include connections to major European destinations and serve as vital links for business and leisure travel.
Lithuania has yet to make a decision regarding the share offer, whilst Germany's Federal Cartel Office this week approved Lufthansa's potential acquisition of a 10% stake. Lufthansa's interest reflects the strategic value of airBaltic's route network and its position in the growing Baltic aviation market.
The Latvian government currently holds the majority stake in airBaltic, with private investors including aircraft leasing companies also maintaining positions. The airline operates an all-Airbus A220 fleet, positioning itself as a modern, fuel-efficient carrier focused on regional connectivity.
As reported by bne IntelliNews, airBaltic, has delayed an initial public offering until early 2026.
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