Turkish Airlines Prepares Binding Offer to Acquire Stake in Air Europa

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2 months ago

Turkish Airlines is moving closer to realizing its interest in Air Europa. As confirmed by a company executive during an earnings call, the Turkish carrier is preparing a binding offer to acquire a stake in the Spanish airline.

“We are preparing a binding offer very soon. However, we have not yet reached that stage. As soon as we have the board’s approval and decision, we will announce it publicly,” the executive stated to investors and analysts.

A Strategic Move to Expand Networks in Europe and Latin America

The primary motivation behind this move, as explained by the executive, is the complementary route networks of both airlines. While Turkish Airlines operates one of the world’s most extensive networks, Air Europa has a strong presence in Latin America and the Iberian Peninsula—a combination that could significantly strengthen the Turkish carrier’s global reach.

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Currently, Air Europa connects Madrid with key cities in Spain, Europe, and Latin America. This connectivity is seen by Turkish Airlines as an ideal bridge to expand its influence in markets where its presence remains limited.

Competition Withdraws: Clear Path for Turkish

Competition for this potential acquisition has dwindled significantly. Lufthansa withdrew its intention to submit an offer on Tuesday, following Air France-KLM, which had already announced its exit the previous week.

These departures clear the way for Turkish Airlines, though the process has been far from straightforward. Reuters previously reported that delays in the operation were linked to disagreements within the Hidalgo family—owners of Air Europa—and concerns among interested airlines about the deal’s structure.

Air Europa’s Financial Context

Air Europa is seeking liquidity to address pending obligations, including the repayment of a loan provided by the Spanish government. This need for capital opens the door to strategic investors like Turkish Airlines.

In June, the Istanbul-based airline revealed it was holding non-binding talks about a potential investment in the Spanish company. Now, the announcement of a binding offer marks a firm step toward a potential alliance.