Turkish Airlines Nears Deal to Acquire Minority Stake in Spain’s Air Europa
Turkish Airlines (THY) is reportedly in the final stages of talks to acquire a minority stake in financially troubled Spanish carrier Air Europa. According to reports from El Español and Reuters, THY has emerged as a leading candidate to invest in Air Europa, currently majority-owned by Globalia, while Air France-KLM has officially withdrawn from the negotiations.
Air Europa’s current ownership structure includes Globalia holding 80% and International Airlines Group (IAG), the parent company of British Airways, holding the remaining 20%. Recent negotiations have intensified, with THY and Lufthansa reportedly considering a joint capital injection of €240 million to acquire approximately 25% of the airline. This investment would be used for repaying government aid received during the pandemic and for supporting the company’s restructuring process.
Search for Consolidation and Competitive Edge
In its statement, the Air France-KLM Group confirmed it had exited the negotiations due to the inability to reach common ground with Globalia. However, it emphasized that its current cooperation with Air Europa, a SkyTeam member, would continue. This move follows Etihad Airways’ withdrawal earlier this year, leaving THY and Lufthansa as the key remaining potential investors.
Lufthansa CEO Carsten Spohr told Reuters that discussions were still ongoing but acknowledged the complexity of the deal, adding that it was too early to predict whether the talks would succeed.
Air Europa Pursuing New Credit Package
Meanwhile, despite expecting to close the year with record financial results, Air Europa is working to secure a new credit facility to improve liquidity. The airline is reportedly negotiating a €140 million loan package with major Spanish banks such as Santander, BBVA, Caixabank, and Sabadell. The loan would be used to help repay €475 million in government funding still outstanding from Spain’s state-owned investment fund SEPI, received during the pandemic.
Strategic Move for Future Growth
As pressure for consolidation mounts in the European aviation sector, THY’s potential partnership with Air Europa is seen as a reflection of the growing competition in southern Europe. Air Europa’s strong network in both intra-European and Latin American routes aligns closely with Turkish Airlines’ strategic expansion goals.
Although no official deal has been announced yet, the negotiations are reportedly intensifying, and the parties are approaching the binding offer stage.
