TURKISH Airlines has formally signed a deal to buy around a quarter of rival airline Air Europa – although the carrier will remain under Spanish majority control.
The Turkish aviation company, the world’s largest operator by number of countries served, will invest €300 million in convertible debt, exchanged for a stake between 25 and 27% under the terms of a deal first agreed over the summer.
The investment values Air Europa, Spain’s third largest airline after Iberia and Vueling, at approximately €1.2 billion.
Spain’s Hidalgo family will retain a majority stake, although some shares have been transferred to the British-Spanish company IAG – which operates airlines including British Airways and Iberia – to ensure their stake remains at 20%.
READ MORE: Turkish Airlines banks on South American tourism market with €300m stake in Spain’s Air Europa
The deal comes after Air Europa announced that it had repaid a pandemic-era state-backed loan of almost €500 million to SEPI, Spain’s state aid fund, one year earlier than planned.
The landmark deal was first agreed by the parties in August, with Turkish Airlines beating out competition from rival operators including Lufthansa and Air France.
Based in Istanbul, Turkish Airlines operates scheduled services to over 350 different destinations in 131 countries, more than any other airline.
In 2024, the company’s revenue stood at over €19 billion.
The deal will allow Turkish Airlines to expand their operations to Latin America, the destination for 20 long-haul Air Europa services from Madrid including Asuncion, Buenos Aires and Caracas.
In 2023, Air Europa had a 22.1% share of all flights between Spain and Latin America.
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