Greek carrier Aegean Airlines is positioning to take a stake of up to 21% in Spanish low-cost carrier Volotea by mid-2025 after participating in a round of fundraising with the latter’s shareholders.
Announcing an initial €25 million ($27.6 million) investment in Volotea on 3 September in Athens, Aegean says the pan-European operator is attractive because it serves secondary markets with a low-cost model that is complementary to its own focus on larger international and domestic markets from Greece.
It comes after the two carriers formed a relationship in 2021 when they announced codeshares covering 100 routes in Italy, France, Spain and Greece.
“Aegean and Volotea may have different operating models and products but are in many ways complementary and share a customer-focused philosophy,” says Aegean chair Eftichios Vassilakis.
”We are investing in Volotea because we believe in the strategy and potential of Volotea’s expandable model, but also to deepen our distribution reach into three highly significant source markets – France, Italy and Spain – and to join forces in providing more direct connectivity from these markets to regional airports of Greece.”
The Greek carrier says it is taking part in two rounds of capital injections involving other Volotea shareholders with an aim to raise €100 million for the growing Spanish business.
The first round took place days ago, with Aegean injecting €25 million into Volotea – towards a €50 million target among Volotea shareholders – in the form of convertible debt, which it can swap for a 13% stake in the carrier.
Aegean says it intends to take part in a second round in the first half of 2025, based on certain conditions around Volotea’s performance, with another investment of €25 towards a €50 million target. Converting that debt would take Aegean’s shareholding to 21%.
Aligning the businesses will make them a stronger force in Europe, the two carriers suggest.
“A single carrier cannot be everything to everybody,” says Aegean chief executive Dimitrios Gerogiannis. “There is a need for a business model that Volotea supports very well.”
Alongside strengthening Volotea’s presence in Greece – where Athens is one of its 21 bases across Europe – the deal will also help the Spanish carrier to grow in key markets such as Spain, Italy and France, Aegean says. Greece is currently Volotea’s fourth-largest market behind those three markets, chief executive Carlos Munoz states, ahead of Germany where the carrier has a codeshare deal with Lufthansa Group.
“To have your national champion in Greece co-operate with a high-growth low-cost champion in Europe can only be a good thing,” Munoz says.
The closer relationship will also bring skills and distribution synergies, the partners say, and improve the two businesses’ ability to respond to industry challenges.
The two companies insist they will remain as independent companies.
Munoz confirms that Volotea’s plans to co-operate with Abra Group will no longer be taken forward after the collapse of IAG’s agreement to purchase Air Europa.
