Last one standing: Turkish Airlines is the only bidder left for Air Europa stake
August 6, 2025
Turkish Airlines has become the last bidder standing for a stake in Spanish leisure airline Air Europa.
On 5 August, Reuters reported that Lufthansa had withdrawn from acquisition talks. This came just a week after Air France-KLM also stepped away from the process.
“After thorough analyses and intense negotiations, we have at this stage decided against further engaging in a capital contribution and shareholding in Air Europa,” a Lufthansa spokesperson told Reuters.
Analysts attribute Lufthansa’s withdrawal to the complexity of the deal and regulatory hurdles, particularly those arising from IAG’s existing 20% stake in Air Europa.
IAG is the parent company of British Airways, Aer Lingus, Iberia, Vueling and LEVEL.
Turkish Airlines becomes last hope for Air Europa
IAG, which acquired a 20% stake in 2022, had previously attempted to take full control of Air Europa. However, it was forced to abandon its takeover plan in 2024 after EU competition regulators raised concerns.
IAG would have been required to surrender a significant number of take-off and landing slots at Spanish airports to avoid monopolising the market, given its existing ownership of Iberia and low-cost carrier Vueling.
Lufthansa’s attempt to take a share in the airline was hindered by competition concerns related to overlapping routes, especially with its hubs in Frankfurt and Munich.
Regulatory pressures were already mounting on the German group following its acquisition of Italy’s ITA Airways, likely a factor in the decision to withdraw.
Air France-KLM, a fellow SkyTeam member with Air Europa, was seen as a natural partner due to their long-standing commercial ties and overlapping routes in Europe and Latin America. However, the French-Dutch group abandoned its pursuit, citing internal disagreements with the owners and the complexities of IAG’s involvement.
This now leaves Turkish Airlines as the only airline group still in talks with Globalia, the Spanish conglomerate that owns 80% of Air Europa.
Is Turkish Airlines a good fit for Air Europa?
Air Europa has been seeking fresh capital to repay government loans issued during the pandemic, while allowing its owners to retain control of the airline. Globalia is reportedly open to selling a minority stake not exceeding 49% to refinance debt while maintaining strategic decision-making power.
Sources suggest that Globalia hopes to retain at least a 51% stake in the airline. This structure has complicated negotiations, particularly for groups like Air France-KLM, which reportedly offered €300 million (US347.5 million) for a 51% stake, a level of control Globalia was unwilling to relinquish.
Turkish Airlines is reportedly interested in acquiring a minority stake of around 20–25%, in a move that would significantly expand its European footprint.
The airline does not directly compete with Air Europa on most routes, making it a potentially strategic partner, particularly for eastbound connectivity via its Istanbul hub. The deal could also align with Turkey and Spain’s deepening economic ties.
While the investment could face scrutiny from EU regulators due to Turkish Airlines being a non-EU carrier, there is precedent for such arrangements. Etihad Airways, for example, has previously invested in European airlines including Alitalia and Air Berlin.
It remains to be seen whether Turkish Airlines will proceed with the acquisition and on what terms. If successful, the investment could mark a new chapter for Air Europa, offering the airline much-needed capital and a fresh strategic partner, though alliance compatibility and political optics may yet pose challenges.
A decision from Globalia is expected before the end of summer.
