Zoë Dahse
TODAY Turkish Airlines announced that its offer of a minority stake in the Spanish airline company Air Europa has been accepted.
This new deal means Air Europa will see an investment of €300 million euros, with Turkish Airlines disclosing that the majority of this investment would be seen in the form of an increase in capital.
The deal is still subject to regulatory approval, and will ultimately give Turkish Airlines between 25 and 27% ownership in Air Europa.
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This spells good news for the latter company, as it will help Air Europa pay back state-backed loans left over from the pandemic, which include a €475 million loan from Spain’s SEPI (State Company for Industrial Investments) state aid fund, part of the Ministry of Finance.
Lufthansa and Air France-KLM were previous competitors, but withdrew, allowing Turkish Airlines to sign the deal. International Airlines Group, the parent company of Iberia and British Airways, already owns a 20% stake in Air Europa, while Globalia owns the remaining 80%.
Turkish Airlines interests in Air Europa lie in Air Europa’s flight network, as it complements that of Turkish Airlines, through its strong presence in Latin America and Iberia.
The deal thereby marks a notable cross-border investment, and significant financial breathing space for Air Europa.
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