After an exhaustive analysis and intense negotiations, we have decided at this stage not to proceed with the capital injection nor with taking a share in Air Europa, stated a spokesperson for the German group, as reported by Bloomberg.
In January, Air Europa hired consultancy PJT Partners to assist in seeking new investors, aiming to repay a debt of 475 million euros incurred during the pandemic.
In the same month, contacts with Lufthansa and the Air France-KLM group were confirmed.
The company already conducted a capital increase of 81 million euros at the end of 2024, with 65 million injected by the holding Globalia and 16 million by IAG, thereby maintaining its 20% stake in the company.
Turkish Airlines announced in June that it was in “non-binding” talks with Air Europa, aiming to assess the “investment opportunity” and “explore possible synergies.”
The Turkish airline also indicated it will disclose “any information regarding developments that may arise related to investor decisions.”
Along with Air France-KLM and the International Airlines Group (IAG), which includes British Airways and Iberia, Lufthansa has already shown interest in reviewing the terms of TAP’s dossier, expected to be approved by the Council of Ministers this week.
Lufthansa’s withdrawal from the Air Europa process could thus redirect the German group’s interest towards the Portuguese dossier.
The TAP reprivatization process was formally initiated on July 10, with the approval, in the Council of Ministers, of the decree-law establishing the terms of the operation. The decree is awaiting promulgation by the President of the Republic.
The government plans to sell up to 49.9% of the capital of the Portuguese airline through direct sale, with 5% reserved for employees. The operation includes, in addition to TAP, assets such as Portugália, the company’s healthcare unit, Cateringpor (51%), and SPdH (formerly Groundforce).
