Overview

• Lufthansa purchased €14 million of convertible bonds for a 10 percent stake in AirBaltic, securing a seat on its supervisory board.
• The Bundeskartellamt granted clearance despite acknowledging serious competition concerns on overlapping Germany-Baltic routes.
• Under the deal, AirBaltic will deepen its wet-lease partnership by supplying additional aircraft and crew to Lufthansa.
• Regulators warned that reduced rivalry on routes to Riga, Tallinn and Vilnius could result in higher ticket prices.
• Both airlines will remain legally independent, although Lufthansa is expected to wield significant influence over strategic decisions.