Deutsche Lufthansa AG will buy a 10% stake in Latvian flag carrier AirBaltic AS as the German carrier group continues its consolidation push in Europe.

German aviation giant Lufthansa Group is acquiring a minority stake in Latvian carrier airBaltic, the two airlines said on Wednesday. The German group said it signed an agreement to purchase a 10% stake in the form of convertible shares for €14 million ($14.

Lufthansa has agreed to acquire a 10% stake in IPO-bound Latvian airline airBaltic, the German airline said on Wednesday, its latest move to expand its European presence and gain access to more planes to relieve its supply constraints.

Lufthansa's recently acquired 10 percent stake in Latvian airliner airBaltic is also positive news for Estonian passengers, said former Nordica CEO Erki Urva. It can also be seen as a seal of approval,

Lufthansa said on Wednesday it had agreed to receive a stake of 10% in Latvian airline airBaltic, as the German airline seeks to strengthen its international network. The stake will be issued in the form of convertible shares currently at a subscription price of 14 million euros,

Lufthansa Group has agreed to invest 14 million euros in Air Baltic for a convertible share representing a 10% stake in the Latvia-based carrier. Lufthansa also would take a seat on Air Baltic's supervisory board.