Turkish Airlines Nears Air Europa Deal as KLM Exits Talks
Turkish Airlines is reportedly close to finalizing an investment deal in Spain’s Air Europa, positioning itself as the leading candidate to acquire a stake in the struggling carrier. According to Spanish news outlet El Español, Turkish Airlines is in advanced talks with Globalia, which owns 80% of Air Europa, while IAG retains the remaining 20%. A formal agreement could be imminent.
Meanwhile, Air France-KLM has officially withdrawn from negotiations. The Franco-Dutch airline group cited an inability to reach terms with Globalia, stating: “Air France-KLM stepped out from the process initiated for the sale of a stake in Air Europa as no agreement could be reached.” This follows an earlier withdrawal by Etihad Airways.
Lufthansa Group remains in discussions with Globalia, although CEO Carsten Spohr acknowledged the complexity of the deal, saying it is “very difficult to get this to succeed.” Reports suggest both Lufthansa and Turkish Airlines are eyeing a 25% stake in Air Europa, potentially injecting EUR240 million (USD275 million) in fresh capital.
Air Europa is also negotiating a EUR140 million (USD160 million) loan with Spanish banks Santander, BBVA, Caixabank, and Sabadell to strengthen its finances. The airline seeks to repay the EUR475 million (USD550 million) it received from Spain’s sovereign wealth fund SEPI during the COVID-19 crisis.
Despite ongoing uncertainty, Air Europa expects to post record results this year. Meanwhile, both Lufthansa and Air France-KLM are also pursuing separate bids to acquire a stake in TAP Air Portugal.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com