Latvian national airline airBaltic and India's flagship carrier, Air India, have announced a significant new partnership by signing a Special Prorate Agreement (SPA). This collaboration, unveiled on June 3, 2025, during the 81st International Air Transport Association (IATA) Annual General Meeting (AGM) in New Delhi, is designed to enhance travel options and streamline connectivity between the Baltic states of Latvia, Estonia, Lithuania, and India.

Under this new SPA, both airBaltic and Air India will be able to sell connecting tickets that include flights operated by each other. This integration aims to provide passengers with seamless travel experiences, offering more flexible and interconnected itineraries. The agreement marks a crucial step in expanding the route networks of both carriers and simplifying the journey for travelers between these geographically distinct regions.

Pauls Cālītis, Interim CEO and COO of airBaltic, expressed enthusiasm for the partnership, stating, "Announced during this year’s IATA Annual General Meeting, this new agreement with Air India marks the first step toward our air ties with India. The cooperation will bring mutual benefits to both airlines and our passengers. We are excited about this development and look forward to our partnership, especially as we observe a steady increase in passenger traffic between the Baltics and India."

Echoing this sentiment, Nipun Aggarwal, Chief Commercial Officer of Air India, highlighted the strategic advantages. "Our new partnership with airBaltic strengthens our extended worldwide network and provides easy access to our guests to and from the Baltics, an emerging tourism region for Indians, consisting of nations with which India’s trade ties continue to grow," Aggarwal remarked.

The direct benefits for passengers are numerous. Travelers can now book connecting flights on a single ticket, which simplifies the booking process and reduces the complexities often associated with multi-carrier journeys. This integration also includes through-checked baggage to the final destination, eliminating the need for passengers to re-check their luggage during layovers. Furthermore, coordinated schedules and an increased array of flight options are expected to lead to shorter overall travel times and greater flexibility in planning.

For the airlines, this prorate agreement is poised to strengthen their competitive positions in their respective markets. By collaborating, airBaltic and Air India can optimize aircraft load factors, enhance route profitability, and attract new customer segments seeking convenient travel solutions between Europe and India. The agreement also establishes a foundation for potential future collaborations, which could include joint marketing initiatives, frequent flyer program integrations, and expanded codeshare services.

airBaltic, known for its modern fleet, operates nearly 130 routes from its bases in Riga (Latvia), Tallinn (Estonia), Vilnius (Lithuania), Tampere (Finland), and seasonally from Gran Canaria (Spain), connecting to destinations across Europe, the Middle East, North Africa, and the Caucasus region. This partnership with Air India allows airBaltic to tap into India's vast and growing aviation market, opening new travel gateways for Baltic residents. Conversely, Indian passengers will gain more convenient access to the Baltic capitals and other European destinations served by airBaltic.

This collaboration is strategically timed as the global aviation industry continues its recovery and international travel demand rebounds. India's aviation sector is experiencing rapid expansion, presenting significant opportunities. The Baltic region, with its strategic location, serves as an important bridge between Northern and Eastern Europe. The synergy between airBaltic and Air India is expected to foster greater business travel and people-to-people exchanges between these regions.

This move by Air India is part of a broader strategy to enhance its international connectivity. Notably, on June 2, 2025, just a day before the airBaltic announcement, Air India also formalized codeshare agreements with Icelandair, covering 15 routes between India and Europe, and with Air Mauritius, encompassing 17 routes across India, Mauritius, La Réunion, South Africa, and Madagascar.

Both airBaltic and Air India are optimistic about the long-term potential of their partnership. The current SPA is seen as a foundational step, with opportunities for deeper cooperation in the future. This collaboration aligns with airBaltic’s vision of connecting the Baltics with key global markets and complements Air India's ongoing efforts to strengthen its international presence and service offerings. Ultimately, this partnership promises a more convenient and accessible travel experience, contributing positively to cultural, economic, and tourism ties between the Baltics and India.