The only candidate to acquire a stake in the company Air Europa, Turkish Airlines has finally been given the go-ahead to invest $350 million (300 million euros) in the company. However, this stake will be a minority one in the Spanish carrier, representing only 26% to 27% of capital.
The investment will initially be structured as a loan. It will then be converted into shares once the regulators have given the go-ahead. The process is expected to take between six and twelve months.
For Air Europa, the cash injection will reduce its debt by 475 million euroswhich dates back to the pandemic. The airline will be able to look to the future with greater serenity. At the same time, it will be able to rethink its network strategy and coordinate with its new Turkish partner. In fact, Turkish Airlines sees its investment in Air Europa as part of its global expansion strategy. This will give the company a strong position in Latin America and the Iberian Peninsula.. Air Europa serves 19 destinations in 13 countries in Latin America. And more than a dozen towns in Spain and Portugal.
This will enable network synergies to be developed between South America, the Middle East, Africa and Asia. via Madrid and Istanbul. The acquisition of a stake in Turkish Airlines gives the Istanbul-based carrier another advantage: the fact that we are now part of the European Union…
