Turkish Airlines, which continues to take significant steps within its global expansion strategy, has moved a step closer to partnering with the Spanish airline company Air Europa. Turkish Airlines had made an offer of 300 million euros for a 26% stake in Air Europa in August of last year, which was accepted. The agreement, awaiting approval since then, received the necessary green light from the Spanish government this week. Thus, Turkish Airlines has overcome another critical threshold to complete this crucial deal.
In a statement made by Turkish Airlines, it was noted that other applications regarding the investment process are still ongoing, and the acquisition is expected to be completed within 2026.
What will be THY's contribution?
Turkish Airlines emphasizes that this investment is part of its strategy to increase access to tourism markets in Latin America. Additionally, strengthening passenger traffic between Spain and Turkey and increasing the number of tourists coming from Spain are among the objectives.
The Latin America detail is particularly noteworthy here. Although Turkish Airlines has established one of the world's widest flight networks in recent years, Latin America is still considered one of the regions where the company is relatively weak. Air Europa, with its Madrid-based structure, offers strong connections to South America and the Caribbean. Therefore, the investment in Air Europa could significantly increase THY's reach in the region.
On the other hand, Air Europa has long been considered one of the most important acquisition targets in the European aviation sector. The majority stake in the company is still held by the Globalia group. Previously, IAG, the parent company of British Airways, had sought to acquire all of Air Europa. In fact, a 20% stake in the company was acquired during that process. However, due to concessions demanded by European Union regulators, IAG twice backed away from its plan to fully acquire Air Europa. Despite this, IAG still holds a 20% stake in the company. Turkish Airlines will now become a significant minority partner by acquiring a 26% stake.
Turkish Airlines' partnership with Air Europa is also noteworthy in terms of power balances in the airline sector. This is because Turkish Airlines is currently one of the most important members of the Star Alliance alliance. Air Europa, however, is not currently affiliated with any major airline alliance. For this reason, there are comments suggesting that Air Europa could move closer to Star Alliance in the future after THY's investment.
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