Get ready for a major shift in the European airline landscape! Turkish Airlines is making a significant move by acquiring a 26% stake in Air Europa, a Mallorca-based airline. This deal, valued at €300 million, is poised to reshape air travel to and from the Balearic Islands and beyond.
What Does This Mean for Mallorca?
The Balearic Government is closely watching the developments, seeking assurances that the acquisition won't negatively impact residents or workers. Connectivity to the islands is a key priority, and officials are keen to ensure seamless travel options remain available.
While Turkish Airlines isn't a major player in flights to Mallorca currently, the government is cautiously optimistic that operations and connectivity will remain stable. However, potential consequences for Air Europa's workforce are being carefully considered.
The Deal Details
The investment includes a €275 million loan that will be converted into shares, along with an additional €25 million cash injection. Following the completion of the transaction, which is expected within 6-12 months, the Hidalgo family, through Globalia, will retain a majority shareholding of 56-57%. IAG (Iberia) will maintain its 20% stake.
- Turkish Airlines acquires 26% of Air Europa.
- Globalia retains majority shareholding.
- IAG maintains 20% stake.
The sale is subject to approval from the Spanish Government. While a previous takeover attempt by Iberia faced competition concerns, this deal is unlikely to encounter similar hurdles.
What's Next?
Keep an eye on this developing story as it progresses through regulatory approvals. The partnership between Turkish Airlines and Air Europa promises to bring new opportunities and potentially alter the dynamics of air travel in the region. This move could lead to expanded routes, enhanced services, and increased competition, ultimately benefiting travelers.