Turkish Airlines’ surprise deal for a stake in Spanish carrier Air Europa came down to one key factor: a willingness to share control with the airline’s founding Hidalgo family.
The arrangement sets Turkish Airlines apart from rivals Lufthansa and Air France-KLM, both of which withdrew after failing to secure a path to majority ownership. Sources said Air France-KLM also balked at Air Europa’s valuation of more than 1 billion euros, News.Az reports, citing Reuters.
Turkish Airlines has agreed to invest €300 million ($355 million) in convertible debt, equivalent to a 25–27% stake, Chairman Ahmet Bolat confirmed Wednesday. The airline has no plans to increase its shareholding.
The deal offers Turkish Airlines a strategic foothold in Iberia, unlocking fast-growing routes to Latin America. Analysts say the move is less about immediate financial gains and more about geopolitics and connectivity. “The risks of taking minority stakes include a lack of control and reduced ability to influence strategy,” noted Neil Glynn, analyst at Alvarez & Marsal.
European airline stakes are rare for non-EU carriers due to ownership restrictions. Air Europa’s case was further complicated by IAG’s existing 20% stake and regulatory hurdles that derailed IAG’s full takeover attempt last year.
While Turkish Airlines insists the move is a commercial decision, the deal has political backing. Turkish Transport Minister Abdulkadir Uraloglu praised it as part of a wider strategy to connect Turkiye globally.
Industry analysts say Turkish Airlines’ strong financial position and state support give it flexibility compared to European rivals. The group projects a net debt-to-EBITDAR ratio of 1.6 for 2025, similar to Lufthansa and Air France-KLM, but with greater government backing.
