Turkish Airlines seals deal to buy 26% of Air Europa
/https://aviacionlinecdn.eleco.com.ar/media/2025/08/air_europa_y_turkish_airlines.jpg)
A new realignment in European aviation took shape this Tuesday: Turkish Airlines has signed the acquisition of a 26% stake in the capital of Air Europa. The deal, valued at approximately €275 million, positions the Turkish carrier as a strategic partner in the company controlled by the Hidalgo family. An official announcement from both companies is expected in the coming hours, according to Spanish media reports.
The transaction is now subject to approval from competition authorities, a process that could take about three months. With this investment, Turkish Airlines gains access to Air Europa's route network between the European continent and Latin America, operated from its hub at Madrid-Barajas airport.
The agreement materializes after other airline groups, such as Air France-KLM and Lufthansa, explored the possibility but ultimately declined to move forward.
What you need to know about the deal
Who is buying? Turkish Airlines, the flag carrier of Turkey.
What is being bought? A 26% stake in Air Europa.
For how much? €275 million.
What is the new ownership structure? The Hidalgo family retains control, with IAG as a partner holding 20% and Turkish Airlines holding 26%.
Next steps? Approval from competition authorities.
Financial Restructuring and New Shareholder Landscape
The capital injection will be fundamental for Air Europa's financial stability. According to statements by its president, Juan José Hidalgo, to the EFE agency, the €275 million, combined with the airline's own cash reserves, will be used to cancel the €475 million loan granted by the state-owned industrial holding company (SEPI) during the health crisis. This bailout was composed of a €240 million participatory loan and a €235 million ordinary loan.
This move follows the repayment of another €150 million loan from the ICO, which was completed in May. In parallel, Air Europa is negotiating a new credit line with Spanish banks for an amount ranging from €100 to €130 million.
With the entry of Turkish Airlines, Air Europa's ownership structure becomes notably diversified. IAG, the parent company of Iberia and British Airways, already controls a 20% stake in the capital. Hidalgo assured that he has no intention of selling more shares and described his new partners as "the best I could have," now having the backing of two of the world's largest airline groups. The president himself expressed his "peace of mind" that "the airline will move forward and that Spain will have its own national company."
The Long Road to an Agreement
This agreement closes a cycle of nearly six years of negotiations and high uncertainty for Air Europa. In November 2019, IAG signed a preliminary agreement to acquire the airline for €1 billion. The COVID-19 crisis, which according to Hidalgo generated losses of €1.4 billion for the company, halted and devalued the operation.
A second attempt by IAG for €500 million also failed, this time due to the demanding conditions imposed by Brussels' competition regulators, which made the integration unfeasible for the Spanish-British holding company. The president of Globalia insists that the state support received "was never a bailout; we were granted a loan guaranteed by Globalia" to overcome a "true ordeal" caused by a global crisis.
The necessary authorizations for the deal with Turkish Airlines are expected to be obtained between September and November of this year, at which point the funds will be used to pay SEPI. The entry of Turkish Airlines, a heavyweight in the Star Alliance, into the capital of Air Europa (a member of SkyTeam), creates an unprecedented dynamic at the Adolfo Suárez Madrid-Barajas Airport (MAD).
Para comentar, debés estar registradoPor favor, iniciá sesión