SEVILLE, Spain (Reuters) – Turkish Airlines has no intention of increasing its stake in Spain’s Air Europa beyond the minority share it is acquiring, the flag carrier’s Chairman Ahmet Bolat said on Wednesday.
“We are not interested in owning Air Europa, we are interested in working with Air Europa,” Bolat said.
Turkish Airlines is interested in the possibilities that Air Europa’s footprint in Latin America offers, he said.
Speaking to reporters in Seville, Bolat also said that other bidders for Air Europa failed due to the business models they proposed and that the deal had been accepted by British Airways-owner International Airlines Group, which holds a 20% stake in Air Europa.
Turkish Airlines will invest 300 million euro ($355 million) in convertible debt, equivalent to a 25–27% stake in Air Europa, Bolat said.
EU regulation prevents Turkish Airlines from owning a 50% stake or more in Air Europa as non-European Union airlines cannot hold a majority ownership in EU-based carriers.
Bolat said other bidders for the Air Europa stake that were short-listed by the Hidalgo family failed not because of the price they offered, which was close to Turkish Airlines’, but because of what they were bringing to the overall business.
He did not identify any of the other bidders.
He said Turkish Airlines’ business plan for the partnership with Air Europa convinced the Hidalgo family and IAG, adding the plan was confidential.
($1 = 0.8447 euros)
(Reporting by Inti Landauro. Writing by Ezgi Erkoyun. Editing by Daren Butler and Mark Potter)
