Aegean Airlines will invest €25 million into Barcelona-based low cost carrier Volotea, it said on September 3, 2024 with potential to double this investment and acquire a 21% stake in the airline. ""Aegean and Volotea may have different operating models and products but are in many ways complimentary and share a customer focused philosophy,"" said Aegean's chairman Eftichios Vassilakis. The investment is made through joining existing shareholders of Volotea in an overall capital increase of up to €50 million in the company through a profit participating loan that will be convertible into shares. ""This capital injection marks a significant financial milestone with our shareholders, and the agreement incorporating AEGEAN as a strategic and financial partner,"" said Volotea CEO and founder Carlos Munoz. ""We have known Aegean and their team as partners for several years now, and share a similar philosophy, values and vision toward European airline consolidation."" The Greek airline said there is potential for a second tranche of the convertible loan in the second quarter of 2025 for an additional amount of up to €50 million in which Aegean would again participate by another €25 million investment. The capital increase for Volotea would then total €100 million overall. The second tranche, once executed and converted into shares, would result in Aegean Airlines acquiring a 21% stake in Volotea. Parallel to the investment, both airlines have entered into a memorandum of understanding (MoU) for commercial cooperation from codeshare agreements and to jointly develop networks between Greek regional airports and other key European destination. ""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,"" explained Vassilakis. The two companies also agreed to cooperate on providing Volotea with MRO and flights simulator training services by Aegean.
Aegean to invest €50 million in Volotea to acquire 21%
