Turkish Airlines Sets Its Sights on Iberian Skies with Strategic Air Europa Stake

Turkish Airlines has made headlines with its surprise acquisition of a 25-27% stake in the Spanish carrier Air Europa, triumphing over European competitors Lufthansa and Air France-KLM. Insiders reveal that Turkish Airlines' willingness to share control with the Hidalgo family, owners of Air Europa, was a key factor in sealing the deal.

This rare investment by a non-European airline comes as major carriers seek to consolidate the fragmented European market. Turkish Airlines, backed by strong political support and financial resources, aims to enhance its global connectivity, especially towards Latin America, while maintaining a minority stake in Air Europa.

The deal's complex dynamics stem from the involvement of British Airways owner IAG, which holds a 20% stake in Air Europa. Analysts suggest that the strategic benefits for Turkish Airlines lie more in geopolitics and connectivity rather than immediate financial gains. Both Lufthansa and Air France-KLM withdrew due to the high valuation and demands for a controlling stake.

(With inputs from agencies.)