Costa News Spain Breaking News | English News in Spain.
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.
Turkish Airlines beat out rivals Lufthansa, Air France and Lufthansa to win the landmark agreement.
Turkish Airlines is based in Istanbul and operates flights to over 350 destinations, which is more than other airlines.
In 2024, the company’s revenue stood at over €19 billion.
Turkish Airlines can now expand their services to Latin America. The airline will operate 20 long-haul Air Europa routes from Madrid to destinations such as Asuncion, Buenos Aires, and Caracas.
Air Europa’s share of flights between Spain and Latin America was 22.1% in 2023.
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