Lufthansa is interested in buying a stake in airBaltic, the state-owned Latvian airline, before the IPO (initial public offering, i.e. the launch of shares on the market), reports Reuters citing sources close to Lufthansa.
Although the negotiations are at an early stage, according to sources, Lufthansa is exploring the possibilities of participating in airBaltic. All this is part of a growing trend in Europe where major carriers are buying up stakes or buying smaller ones, which are finding it increasingly difficult to compete with the aviation giants.
A spokesman for Lufthansa declined to comment on the allegations to Reuters, saying “the company will not comment on rumors,” as did airBaltic. airBaltic CEO Martin Gauss told Reuters in March that he could envision the company being consolidated as part of a larger group, citing Lufthansa and IAG.
The Lufthansa Group currently owns or has shares in the following carriers and brands: Lufthansa, Lufthansa CityLine, Lufthansa City Airlines, Lufthansa Cargo, Swiss International Air Lines, Austrian Airlines, Brussels Airlines, Eurowings, Discover Airlines, Eurowings Europe, Air Dolomiti, Edelweiss Air, SunExpress, Aerologic and ITA. Additionally, it was confirmed earlier this month that Lufthansa is negotiating the acquisition of a 19.9% stake in Portugal’s TAP.
