Negotiations with Turkish Airlines began before the summer, and following the acceptance of a binding offer by the Turkish company last August, the operation’s structuring was completed. This involves immediate financing while awaiting regulatory and competition approvals.
The transaction, valuing Air Europa at approximately 1.175 billion euros, was facilitated through a convertible loan, which will be exchanged for the Turkish airline’s stake in the Spanish company, once all regulatory conditions are met.
The Hidalgo family, through Globalia, will remain the majority shareholder of the company, while IAG will maintain its current 20% stake through the purchase of shares from Globalia, as stated today by Air Europa in a communication.
The agreement with Turkish Airlines allowed Air Europa to cancel the ordinary and participatory loans from the Fund to Support the Solvency of Strategic Companies (FASEE), as well as accumulated interest, totaling nearly 500 million euros, anticipating a year ahead of the established deadline.
After settling last May the 141 million euros, plus respective interest, of the bank loan received in 2020 with the participation and guarantee of the Official Credit Institute (ICO), Air Europa states that it now closes an important phase in the financial deleveraging process undertaken in recent years, confirming the success of its management strategy.
During this period, Air Europa paid the State about 70,000 euros per day in interest, totaling over 97.2 million euros.
The company estimates that it has paid the State more than 1.8 billion euros in the last five years in interest, taxes, and airport fees, having transported over 48 million passengers and operated more than 289,000 flights during this time.
According to Air Europa, the 475 million euros loan from SEPI “was essential not only to ensure the full recovery of activity after the pandemic but also to generate a very positive return on national economic activity.”
Thanks to this, “not only were approximately 4,000 jobs preserved, but also more than 600 new jobs were created, reaching about 4,600 employees who are now part of the airline.”
