VILNIUS – Lithuania is considering buying a stake in Latvia's national airline Air Baltic, Transport Minister Marius Skuodis said on Tuesday.
"I have already had two conversations with the Latvian transport minister about the possibility of Lithuania acquiring a stake in Air Baltic," Skuodis told reporters at Vilnius Airport.
"I believe the conditions in such a case should involve some of the planes being based here and rotating from Lithuania," he said.
The possible terms of the deal are currently being discussed, according to the minister.
"As you know, Air Baltic is preparing for a public offering at the end of this year, so we will see whether or not these initial discussions can take some concrete form," he said.
Skuodis noted that Air Baltic could become the airline of all three Baltic states in the future.
Air Baltic, which offers flights from all three Baltic capitals, last September hired STJ Advisors and Superia as its financial advisors for the planned IPO.
The airline's management sees the potential listing as a significant step towards a new level of development.
Latvian Transport Minister Kaspars Briskens has said that Air Baltic's IPO could take place in the second half of this year, adding that this will depend on the situation in global aviation and financial markets.
The Latvian state owns 97.97 percent of Air Baltic, with the remaining shares held by Aircraft Leasing 1, a company owned by Danish investor Lars Thuesen.