Turkish Airlines Advances on Binding Offer for Air Europa Following Withdrawal of Lufthansa and Air France-KLM
Turkish Airlines confirms it is preparing a binding offer for Air Europa, seeking to expand its network in Latin America and the Iberian Peninsula.
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Turkish Airlines has reaffirmed its strong interest in acquiring a stake in the Spanish carrier Air Europa and is currently in the process of preparing a binding offer, according to statements from a senior company executive.
During an earnings call with investors, an executive from the Turkish airline stated that "we are preparing to provide a binding offer very soon." However, he clarified that the internal process has not yet concluded, indicating that "as soon as we have the board approval and the board decision, we will announce it publicly."
The primary driver behind this strategy is Air Europa's route network. The executive emphasized that its network complements that of Turkish Airlines, thanks to its robust presence in Latin America and the Iberian Peninsula. The acquisition would provide the Turkish flag carrier with a strategic hub at Madrid-Barajas Airport (MAD), granting it unprecedented access to the transatlantic market to Latin America, one of the few regions where its reach is limited.
This move by Turkish Airlines gains greater significance following the recent withdrawal of two other European aviation giants. Last Tuesday, the Lufthansa Group reported it was abandoning its plans to submit a bid, a decision that followed Air France-KLM's announcement to pull out of the process the previous week. With these two competitors out of the picture, Turkish Airlines (THYAO.IS) remains the only publicly confirmed suitor.
Key Information: The Bid for Air Europa
Why does Turkish Airlines want to buy Air Europa? To gain a strategic hub in Madrid and expand its network in Latin America, a highly profitable market where Air Europa has a strong presence with its fleet of Boeing 787 Dreamliners.
Who else was interested? The Lufthansa and Air France-KLM groups considered submitting offers, but both withdrew in early August 2025, citing various concerns about the deal's structure.
Why is Air Europa seeking a partner? The Globalia group's airline needs to raise capital to repay a €475 million state loan it received from the Spanish government to overcome the pandemic crisis.
The sale of Air Europa is a complex process that has been ongoing for several years. The airline, owned by the Hidalgo family, urgently needs funds to repay the government bailout. Previous reports from agencies like Reuters indicated that the process faced delays due to internal disagreements within the owning family and concerns from potential buyers about the structure of a possible transaction.
In June, Turkish Airlines itself had disclosed that it was holding non-binding talks, a stage that is now evolving into a formal proposal that could define the future of one of Spain's leading airlines.
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