Boeing787 AirEuropa
The Spanish government has approved the foreign investment by Turkish Airlines in Air Europa, Turkish said on June 5 in an update to investors. Other application procedures continue, but Turkish is optimistic about closing the transaction later this year.
Turkish Airlines eyes a 25 to 27 percent minority stake in the Spanish airline, which is majority-owned by leisure group Globalia. International Airlines Group (IAG) has a 20 percent share. Turkish wants to pay €300 million.
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Start My Test Flight →Almost exactly a year ago, Turkish showed its interest in Air Europa and disclosed that it had held non-binding discussions with Globalia about a potential minority share. This was followed by a binding offer on August 7, which was accepted two weeks later. In November, Turkish said that transaction documentation had been completed and a partnership agreement signed.
Today, Turkish said about the regulatory process: “In this regard, Foreign Direct Investment (“FDI”) approval for the transaction was authorised by the Government of Spain. Currently, other application processes related to the investment process continue, and the transaction is expected to be finalised in 2026.”
Air Europa is an interesting airline to Turkish because of its network in South and Latin America, which includes multiple destinations in Brazil, Argentina, Peru, Chile, Colombia, Paraguay, Honduras, and Mexico. Turkish already has a partnership with Air Europa, but taking a minority share would give it more control.
Complementary nature
Last August, Turkish motivated its interest in Air Europa like this: “The complementary nature of Turkish Airlines’ global network and Air Europa’s strong presence in the Iberian Peninsula and Latin America across both passenger and cargo segments, enabling scaled and accelerated growth in the Latin American market; and the potential to create a leverage effect for our aviation ecosystem — including subsidiaries and JVs — through new revenue streams and increased regional operational diversity.”
In its annual report, Turkish said: “We aim to further strengthen our Latin America network with plans to increase the frequency of our flights that continue to Santiago after Sao Paulo.” The carrier complemented its strategic partnership with LATAM by agreements with Copa, Avianca, GOL, Azul, and Aerolineas Argentinas. “This provides us with access to 41 destinations in the region where the Company does not operate its own flights.”
Strong commitment
For Air Europa, finding a shareholder with a strong commitment has been on the agenda since 2019. IAG intended to buy the airline in November 2019, but COVID-19 interrupted plans and led to a re-evaluation of the company’s value. In 2022, IAG took its 20 percent share for €100 million and upped its offer by another €400 million in 2023. In August 2024, IAG terminated the agreement and paid a €50 million break fee, as the terms and conditions set out by the European Commission proved to be too complicated. Pursuing a stake in Air Europa would not be in the interest of IAG’s shareholders.
Independent of its future, Air Europa has been investing in its fleet and confirmed an MoU for 20 Airbus A350-900s plus 20 options in January. The airline has been operating 29 Boeing 787-8s and -9s and has a fleet of 11 737-800s and seven MAX 8s.
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