The Lufthansa Group has concluded its talks on a minority stake in the Spanish airline Air Europa officially ended. After “detailed analyses and intensive negotiations,” the decision was made to refrain from a capital investment. Lufthansa is thus following the example of Air France-KLM, which had already withdrawn from the bidding process. The intention of the Spanish tourism group Globalia, parent company of Air Europa, to retain control of the airline and limit external shareholdings to a maximum of 25 percent, made negotiations more difficult for both European companies.
Lufthansa's withdrawal makes Turkish Airlines the most promising candidate for a minority stake. The Turkish airline, which is backed by the Turkish state, confirmed talks with Air Europa back in June. An investment of up to 25 percent is being considered, with strategic synergies and the potential integration of Airbus A330neo long-haul aircraft being the primary focus. Etihad Airways from Abu Dhabi is also reportedly still interested in a stake that would not jeopardize the influence of the founding Hidalgo family.
The British-Spanish IAG , which already owns 20 percent of Air Europa, is monitoring the current developments. IAG has made several attempts in the past to acquire the airline completely, but these efforts were thwarted by antitrust hurdles. Whether IAG will take action again depends on the economic viability of future steps.
The interest shown by several major airlines in Air Europa underscores the Spanish carrier's strategic importance in European air traffic. With its route network, particularly to Latin America, Air Europa is an attractive partner for corporations seeking to strengthen their position in these markets. The decision by Lufthansa and Air France-KLM to break off negotiations demonstrates the difficulties of structuring partnerships under the strict constraints of the owner family.