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Air France-KLM has officially withdrawn from trying to acquire a stake in the Spanish carrier and SkyTeam airline known as Air Europa. This ended a four-month negotiation with the airline’s parent company, Globalia. The decision came after Air France-KLM failed to reach a deal on valuation terms.
This exit narrowed the field of contenders for Air Europa. It’s now actively entertaining proposals from Germany’s Lufthansa Group as well as Turkish Airlines. The Spanish airline is currently 20% owned by IAG, the parent company of British Airways and Iberia, and is seeking additional capital to repay a government loan issued during the pandemic according to Reuters.
Air France-KLM entered talks with Globalia in March 2025. It initially proposed acquiring a majority stake in Air Europa for approximately $327 million. Negotiations faltered when Globalia reportedly valued the airline at $1.1 billion, which is more than 3x the original offer. Despite Air France-KLM’s withdrawal, interest in Air Europa remains strong. Lufthansa Group, having recently acquired Italy’s ITA Airways, is still looking to buy and proposed purchasing 25% of Air Europa for €240 million (around $274 million). Lufthansa CEO Carsten Spohr stated during a recent earnings call that discussions are ongoing and that the process remains “complex.” The Lufthansa Group is also interested in Portuguese flag carrier TAP, which signals the group’s broader strategy to consolidate market share in southern Europe.
Turkish Airlines joined the bidding process in June and is reportedly pursuing a minority stake in Air Europa. The Istanbul-based carrier has not disclosed its offer, but has expressed a strategic interest in continuing to expand its reach in Europe and Latin America. Turkish Airlines flies to 304 destinations in 122 countries (both passenger and cargo flights).
European carriers are facing increased pressure to consolidate to better compete with US giants like United and Delta as well as Gulf carriers like Emirates and Etihad. Air Europa is viewed as a valuable prize in the competitive European aviation market. The airline operates a robust domestic and regional network in Spain and connects Adolfo Suárez Madrid-Barajas Airport (MAD) with key destinations across Europe, Latin America, and the Caribbean. Whoever wins a stake in Air Europa will receive:
- Access to Adolfo Suárez Madrid-Barajas Airport (MAD) (a major gateway to Latin America)
- An expanded long-haul route portfolio
- Increased leverage in one of Europe’s busiest air corridors
Anthony’s Take: Lufthansa and Turkish Airlines are still in play. With the airline seeking much-needed liquidity we could see a deal materialize quickly. Whichever carrier comes out on top, the acquisition is likely to have a significant impact on European air travel, particularly in the southern Europe and transatlantic markets. It will also be interesting to see if either of these Star Alliance players swing Air Europa out of SkyTeam.
(Image Credits: Air Europa, Air France-KLM, and Lufthansa Group.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.