Aegean Airlines has invested €25 million in Barcelona-based budget carrier Volotea. This capital injection is part of a larger fundraising effort involving Volotea's existing shareholders, totalling €50 million.
Aegean made the investment through a profit-participating loan, which will later be converted into shares. Volotea may receive another round of investment next year, with Aegean indicating it could contribute an additional €25 million as part of another €50 million funding round, subject to various conditions primarily related to Volotea's financial performance in 2024.
Once Aegean's current investment is converted into shares, it will hold a 13% stake in Volotea. Should the Greek carrier invest further next year, its shareholding in Volotea could potentially increase to 21%. Carlos Muñoz, Founder and CEO of Volotea, remarked, “Today is an extremely important day for Volotea, as this capital injection marks a significant financial milestone with our shareholders and the agreement incorporating AEGEAN as a strategic and financial partner. We have known AEGEAN and their team as partners for several years now, and share a similar philosophy, values and vision towards European airline consolidation. We are extremely happy with this new step in our successful partnership together.”
Aegean Airlines intends to expand its partnership with Volotea beyond just financial investment and is exploring opportunities for mutually beneficial collaboration. The two airlines have signed a Memorandum of Understanding for cooperation in distribution and other commercial areas.
For instance, they plan to begin cross-selling each other's products through their websites while also working together to develop and expand the international network from Greek regional airports, such as Heraklion, Rhodes, and Chania, to key European markets, including France, Italy, and Spain.
Additionally, there are plans to explore cooperation in MRO (Maintenance, Repair, and Overhaul) and flight simulator training services through Aegean's Group to support Volotea in these areas.
Aegean's Chairman, Eftichios Vassilakis, acknowledged that while the two airlines operate different models and products, they are complementary in many ways. He stated that Aegean's decision to invest in Volotea is based on the belief that the budget carrier has an expandable model, which will also help Aegean extend its reach into crucial markets such as France, Italy, and Spain.
(€1.00 = US$ 1.11 at time of publication).
