Turkish Airlines Moves Toward €300M Air Europa Stake After Spain Approval
By Bosphorus News Economy Desk
Turkish Airlines is moving closer to acquiring a minority stake in Spain's Air Europa after Madrid approved the foreign direct investment process for the planned 300 million euro transaction.
In a Public Disclosure Platform (KAP) filing, Turkish Airlines confirmed that its binding offer for a minority stake in Air Europa had been accepted and that the parties had signed an investment agreement.
The Spanish government has granted foreign direct investment approval for the transaction, while other approval and application processes remain in progress. Turkish Airlines expects the deal to be completed in 2026, subject to the remaining technical and regulatory steps.
The investment is set at 300 million euros. After closing, Turkish Airlines is expected to hold around 25% to 27% of Air Europa, with the final figure depending on technical and financial adjustments.
Air Europa described the structure as an exchangeable loan that would convert into an equity stake of about 26% once all regulatory approvals are completed.
The Spanish carrier also tied the agreement to its balance sheet. The investment would allow Air Europa to repay, one year ahead of schedule, the 475 million euro loan it received from Spain's state-backed SEPI rescue mechanism during the pandemic period.
Air Europa valued the transaction at around 1.175 billion euros. Under the planned structure, the Hidalgo family's Globalia group remains the majority shareholder, while International Airlines Group keeps its place in the shareholder base.
Europa Press reported that Spain's Council of Ministers cleared Turkish Airlines' entry into Air Europa's capital under foreign investment rules, placing the expected stake at 26.5% and the investment value at around 300 million euros.
The deal is less about control than access. Air Europa gives Turkish Airlines a Madrid-based network with strong Latin America routes, complementing its Istanbul hub and wider long-haul growth strategy.
Turkish Airlines has framed the investment around new tourism markets in Latin America and the development of passenger and cargo traffic between Spain and Türkiye.
The transaction gives Turkish Airlines a route into a Madrid-centered traffic system at a time when European airline consolidation remains tightly watched by regulators.
The structure also carries a clear regulatory logic. A minority stake allows Turkish Airlines to build a commercial and network position inside the European aviation market while leaving Air Europa's Spanish control structure intact.
The remaining approval process will decide the final timing and shape of the transaction. Spain's foreign investment green light is the most important official step so far in Turkish Airlines' planned entry into Air Europa.
***Sources: Turkish Airlines KAP disclosure, Air Europa, Europa Press, Bosphorus News review.