Turkish Airlines is considering a bid for a minority stake in Air Europa, joining a competitive field of suitors vying for a share of the Spanish carrier. According to sources familiar with the matter, binding offers for the stake are expected to be submitted by early July, marking a significant milestone in the ongoing sale process. This move is particularly notable as it is rare for airlines from outside Europe to invest in regional carriers, highlighting Turkish Airlines’ ambitions to expand its influence in the European aviation market.
The interest from Turkish Airlines comes as Air Europa seeks to raise funds to repay a government loan extended during the COVID-19 pandemic. The bidding process, managed by Globalia—the parent company founded by the Hidalgo family—has already attracted attention from major European airlines, including Air France-KLM and Lufthansa, who are also in talks regarding a potential stake. Air Europa currently generates just over a quarter of its revenue from European markets and maintains a codeshare agreement with Turkish Airlines, which could further strengthen their partnership if the deal proceeds.
The sale process has faced several delays, initially targeting binding offers in May. Disagreements among members of the Hidalgo family and concerns from interested airlines about the structure of the deal have contributed to the holdup. Prospective bidders are reportedly working with advisers to structure their offers, with many viewing the acquisition of a roughly 20% minority stake as a strategic move that could position them for greater control of Air Europa in the future. However, some potential buyers have expressed uncertainty about the mechanisms for increasing their influence over time.
Last year, IAG—the parent company of British Airways and a 20% stakeholder in Air Europa—abandoned its bid for full ownership following regulatory concerns over competition, given its existing control of Iberia, Vueling, and Aer Lingus. The current round of bidding reflects broader consolidation pressures in the European airline industry, as carriers seek to strengthen their positions against global competitors and expand their networks, particularly on popular southern European routes.
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(Source: Investing.com | Market Screener | Kalkinemedia)
