Turkish Airline joins Air Europa with 275 million

Turkish Airlines had been isolated in the race to acquire Air Europa. This Saturday, Air Europa's president confirmed that Turkish Airlines will make a €275 million loan, convertible into shares, to Air Europa.

Once converted, it will give the Turkish company approximately 26-27% of the capital. It is also dependent on the necessary authorizations, which the company expects to obtain between September and November.

In an interview with Efe, cited by El Mundo, the president of Air Europa, Juan José Hidalgo, expressed his "satisfaction" with the agreement, as it gives him the assurance that "the airline will continue to operate and Spain will have its own airline."

This money, together with Air Europa's cash, will allow it to repay the €475 million loan that SEPI (Sociedad Estatal de Participaciones Industriales), a Spanish public holding company, granted during the Covid-19 pandemic, which had an estimated €1.4 billion impact on the company. Hidalgo has always rejected the idea that Air Europa was bailed out by the Spanish state.

Messages reveal Sánchez's involvement in the Air Europa rescue and reference TAP

Hidalgo assures that he does not intend to divest any further stake in Air Europa and acknowledges that he will now have "two good partners." IAG (owner of Iberia, British Airways, Vueling, Aer Lingus, and Level), with a 20% stake, and Turkish Airlines, with 26-27%. "They are some of the best partners I could have." Globalia currently holds 80% of the company and will now dilute its stake.

IAG attempted to acquire Air Europa (for a second time), but the European Commission had doubts , and faced with this obstacle, IAG withdrew. Air France/KLM and Lufthansa were in negotiations in recent months, but these negotiations ultimately failed. The deal was then vacated for Turkish Airlines.