In a surprising move, Turkish Airlines has successfully acquired a significant stake in Spanish carrier Air Europa, outmaneuvering European rivals Lufthansa and Air France-KLM. The deal, valued at 300 million euros for a 25-27% stake, was finalized due to Turkish Airlines’ willingness to share control with Air Europa’s Hidalgo family owners, according to sources familiar with the negotiations. This marks a rare instance of a non-European airline investing in a European carrier, particularly given EU regulations that restrict majority ownership by non-EU entities. The agreement underscores Turkish Airlines’ strategic focus on expanding its presence in Iberia and Latin America, leveraging Air Europa’s established routes. While Lufthansa and Air France-KLM sought a path to majority control, their demands were incompatible with the Hidalgo family’s preference for maintaining influence. Analysts note that the deal is less about financial gain and more about geopolitical and connectivity advantages, positioning Turkish Airlines to strengthen its hub-and-spoke network. The Turkish government’s support further bolsters the airline’s strategic ambitions, with Transport Minister Abdulkadir Uraloglu highlighting the alignment with Turkey’s broader global connectivity strategy. Despite the complexities of minority stakes, Turkish Airlines’ financial stability and political backing mitigate potential risks, ensuring the deal’s viability.
Exclusive: Turkey’s surprise Air Europa deal came down to one key thing: control
