Lufthansa's Discussions on Strategic Investment Venture with airBaltic
In a strategic move, German airline giant Lufthansa has announced its decision to invest 10% in airBaltic, the Latvian national carrier. This investment builds on the existing wet lease agreement between the two airlines and aims to further strengthen airBaltic's role as a strategic partner of the Lufthansa Group.
The partnership will allow Lufthansa to deploy up to 21 additional aircraft of the Airbus A220-300 in summer and 5 in winter at various Lufthansa Group hubs. This move is designed to offer customers an even better connectivity by flexibly complementing Lufthansa's short and medium-haul network with additional flights operated by airBaltic.
For years, airBaltic has been a significant partner for Lufthansa, providing commercial connections to the Baltic region and offering valuable capacity. The business model of airBaltic, which allows it to connect the Baltic region commercially while providing capacity to airlines like the Lufthansa Group, has been instrumental in this partnership.
Lufthansa believes a 10% investment in airBaltic is significant, reflecting its trust in airBaltic's ability to handle the current situation and its confidence in airBaltic's future. The transaction between Lufthansa and airBaltic is pending regulatory review.
The investment by Lufthansa in airBaltic also aims to offer customers more connections throughout the year while taking into account the seasonality of demand. The partnership aims to provide a more comprehensive network, benefiting customers across Europe.
It's worth noting that airBaltic remains competitive, a testament to the effectiveness of its unique business model that requires greater freedom of supervision. The combination of airBaltic's commercial flights and ACMI services allows for efficient operations to the benefit of European customers.
The Lufthansa Group, which currently consists of nine airlines across Europe, holds 41% of ITA Airways and is progressing well with its integration. The planned 10% shareholding by Lufthansa in airBaltic could have a positive effect on the Latvian economy and create more jobs.
Despite the challenges faced by the entire industry due to post-Covid supply chain issues, including engine issues and aircraft delays, airBaltic continues to thrive. The airline is an excellently managed company and Lufthansa's most important wet lease partner, combining efficiency with a high-quality product for customers.
The agreement for wet-leasing up to 21 Airbus A220-300, signed between airBaltic and Lufthansa last fall, is a testament to the strong relationship between the two airlines. As they move forward, this partnership is set to offer even better connectivity and services to customers across Europe.
