Turkish Airlines is acquiring a 26% stake in Spanish airline Air Europa, through an investment of 300 million euros, specifically 275 million euros in the form of a convertible loan and 25 million euros through a direct purchase of shares.
The transaction, which was announced in August, has been officially confirmed and is expected to be completed within 6-12 months, following the approval of the competent competition authorities in Spain and the EU.
The IAG Group, which owns, among others, Iberia, British Airways and Vueling, will also participate in this capital increase, thus maintaining its existing stake of 20% of Air Europa’s capital. On the contrary, the Hidalgo family, through the Globalia Group, will not participate in the increase, thus limiting its participation in Air Europa’s capital from 80% today to approximately 54%, while maintaining control of the airline.
The funds from the capital increase are expected to be used mainly to repay loans of 475 million euros to the state investment fund for industrial holdings SEPI, which were concluded during the pandemic.
The agreement with Turkish Airlines, which already serves six Spanish destinations and manages a fleet of 497 aircraft, opens up prospects for cooperation between the two Groups on routes to Asia and Latin America, as well as in the technical maintenance of the Turkish carrier’s aircraft through Air Europa’s facilities in Madrid and Mallorca. Turkish Airlines is expected to gain a seat on Air Europa’s Board of Directors upon completion of the transaction. The admission of Turkish Airlines confirms Air Europa’s consistent strategy to strengthen its position on the global aviation map, now with the support of two major international partners: Turkish Airlines and IAG.
The information comes from the Office of Economic and Commercial Affairs in Madrid.
