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German Airline Lufthansa Cleared to Acquire Stake in Air Baltic

By  |  June 30, 2025

Germany’s competition watchdog has cleared a deal allowing Lufthansa to acquire a minority interest in Latvian carrier Air Baltic, according to a statement released by the Federal Cartel Office (Bundeskartellamt).

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    The transaction, valued at approximately 14 million euros, will give Lufthansa a 10 percent stake in the Baltic airline. Despite concerns regarding competition on routes connecting Germany and the Baltic region, the antitrust regulator ultimately decided not to block the deal.

    “Although there were significant competition concerns on several routes between Germany and the Baltic States, we nevertheless authorised the acquisition because, overall, the routes concerned belong to so-called smaller markets with very low turnover,” said Andreas Mundt, Chairman of the Federal Cartel Office.

    Source: Luxair Files EU Court Challenge Over Lufthansa-ITA Merger Approval

    Per a statement from the regulator, the markets in question did not generate sufficient volume to justify intervention, and the impact on overall competition was deemed limited. The authority noted that while competition could be affected on some connections, the overall market share and route relevance did not pose a substantial threat to consumers or rivals.

    According to the same statement, the approval reflects the broader regulatory approach to minor shareholdings where structural market dominance is not significantly altered. The move comes amid growing scrutiny of airline partnerships in Europe, particularly in light of increasing consolidation within the aviation sector.

    Source: Agenzia Nova