The Spanish airline, Air Europa, has officially accepted a three hundred million euro investment offer from Turkish Airlines. This agreement comes as Air Europa seeks to manage a considerable debt of four hundred and seventy-five million euros, which was incurred during the pandemic through a loan provided by the State Industrial Participation Company. Air Europa’s president, Juan José Hidalgo, has signed the acceptance letter earlier this week.

In January, Air Europa appointed PJT Partners to assist in finding new investors to secure capital, aiming to reduce its debt following the government’s rescue in November twenty-twenty. Turkish Airlines plans to acquire between twenty-six and twenty-seven percent of Air Europa’s shares, a portion yet to be finalised after further financial assessments.

The investment includes two hundred and seventy-five million euros in the form of a loan that will convert into shares following approval from regulatory bodies, and an additional twenty-five million euros allocated for imminent share purchases. The partnership is expected to enhance both airlines’ operational capacity, leveraging Air Europa’s strong presence in both the Iberian Peninsula and Latin America.

The Turkish airline, which claims to operate flights to the most countries globally, sees this acquisition as a strategic move to diversify its regional operations and boost revenue. Turkish Airlines is largely state-controlled, holding forty-nine point twelve percent of its shares, with the remainder traded publicly.