Turkish Airlines Acquires Stake in Spain's Air Europa
Turkish Airlines has secured an agreement to purchase about one-quarter of the Spanish carrier Air Europa. The airline will invest 300 million euros ($355 million) in convertible debt, convertible into a 25 to 27 percent stake, according to a deal reached in August.
Ownership and Shareholding Structure
- The Hidalgo family, via Globalia, remains the majority shareholder of Air Europa.
- British Airways owner IAG retains its existing 20 percent stake by buying shares from Globalia.
- Turkish Airlines outcompeted European rivals Lufthansa and Air France-KLM to share control of Air Europa with the Hidalgo family.
- Turkish Airlines currently has no plans to increase its stake.
Transaction Details and Market Impact
The deal, expected to close within 6 to 12 months after completing regulatory approvals, values Air Europa at nearly 1.2 billion euros ($1.4 billion). This acquisition forms part of a broader trend where airlines consolidate Europe's fragmented market by acquiring smaller, financially strained operators.
Air Europa announced it had repaid a loan of nearly 500 million euros (~$575 million) to Spain's state-owned industrial holding company SEPI one year ahead of schedule.
Author's Summary
This strategic investment by Turkish Airlines strengthens its position in Europe, joining forces with Air Europa amid ongoing market consolidation and improving the latter's financial stability.