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Turkish Airlines Close to Acquiring Air Europa as Air France-KLM Withdraws

Turkish Airlines Advances in Bid for Air Europa as Air France-KLM Withdraws
Turkish Airlines is positioning itself as the frontrunner to acquire a significant stake in Spain’s Air Europa following the formal withdrawal of Air France-KLM from the bidding process. Recent reports from Spanish media outlet El Español indicate that negotiations between Turkish Airlines and Air Europa’s parent company, Globalia, have intensified, with a deal potentially imminent. Currently, Air Europa is owned predominantly by Globalia, which holds an 80 percent stake, while the International Airlines Group (IAG) retains the remaining 20 percent.
Ongoing Negotiations and Competing Interests
The Lufthansa Group remains a contender in the acquisition race. CEO Carsten Spohr confirmed that discussions with Globalia are ongoing but emphasized the complexity of the negotiations. “I cannot yet give an answer whether it will fail or not. I can confirm that it is very difficult to get this to succeed,” Spohr remarked. According to El Confidencial, both Lufthansa and Turkish Airlines are considering acquiring a 25 percent stake in Air Europa, which would inject approximately EUR 240 million (USD 275 million) in fresh capital into the Spanish carrier.
Air France-KLM, which had previously expressed interest in the stake, officially exited the process, citing an inability to reach an agreement with Globalia. The Franco-Dutch group stated, “Air France-KLM stepped out from the process initiated for the sale of a stake in Air Europa as no agreement could be reached with Globalia. The cooperation between Air France-KLM and Air Europa, a member of SkyTeam, remains unchanged.” This marks the second major withdrawal from the bidding, following Etihad Airways’ exit earlier this year.
Challenges and Market Implications
The potential acquisition by Turkish Airlines faces several significant challenges, including regulatory scrutiny and possible antitrust concerns. Integrating Air Europa’s operations into Turkish Airlines’ network also presents considerable complexities. Market reactions are expected to be mixed; while some investors may view the move as a strategic expansion that enhances Turkish Airlines’ market reach and competitive positioning, others may remain cautious about the operational and regulatory hurdles involved. Competitors in the European aviation sector may respond with increased competition, strategic alliances, or pricing strategies to protect their market share.
Air France-KLM’s withdrawal may lead the group to refocus its strategic priorities, particularly its proposed acquisition of a controlling stake in Scandinavian Airlines (SAS). This initiative aims to strengthen Air France-KLM’s presence in the Nordic region and improve its overall financial performance. Meanwhile, both Air France-KLM and Lufthansa continue to pursue potential stakes in Portugal’s state-owned TAP Air Portugal, reflecting ongoing consolidation trends within the European aviation industry.
Financial Position of Air Europa
Amid these developments, Air Europa is seeking to bolster its financial position by negotiating a new loan of approximately EUR 140 million (USD 160 million) with Spanish banks Santander, BBVA, Caixabank, and Sabadell. This effort comes as the airline faces the obligation to repay a EUR 475 million (USD 550 million) loan provided by Spain’s sovereign wealth fund SEPI during the COVID-19 pandemic.
Neither Turkish Airlines nor the Lufthansa Group has issued comments regarding the ongoing negotiations, and Air Europa has also declined to provide a statement.

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