Latvian transport minister: Lufthansa partnership a ‘strategic asset’ to Air Baltic

Latvia’s government aims to retain at least a 25% interest in Air Baltic as the company prepares to open its capital to investors, but accepts that the carrier might have to give up some of its independence in order to flourish. Speaking to FlightGlobal on 12 February, Latvian transport minister Kaspars Briskens stressed the benefits of Lufthansa’s recent agreement to take a convertible share in the airline ahead of a broader initial public offering.“When we speak about European aviation consolidation, obviously we understand that Air Baltic has been more of an exception rather than the rule in terms of having maintained its independence – and also independence from any aviation alliance,” says Briskens. “But at the same time, of course, we understand the direction in which European aviation is going.” He hopes the IPO will attract a large number of investors, adding that “nothing prevents” Lufthansa “topping up” its shareholding. If Air Baltic opts to expand and strengthen Latvian and Baltic connectivity, he says, a partner such as Lufthansa – which is a cornerstone member of Star Alliance – is “obviously a strategic asset”. The government wants to retain a 25% shareholding, ensuring that the Latvian state stays closely connected to the company, not least because of its geographical position on the periphery of Europe. Briskens points out that Latvia does not have high-speed rail connections and the air transport link is a “critical element”. “Even if Air Baltic becomes primarily owned by private investors, this will not change the strategic impact and importance that the Latvian government and the Latvian state affords to this important company,” he says.<br/>