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Greek carrier Aegean Airlines has announced its plan to proceed with a €25 million investment in Spain's Volotea, one of the major low-cost carrier in Europe.
In this process, the stake it acquires in Volotea starts at 13% and can reach 21%. According to the announcement made public, Aegean's entry into Volotea will take place with a capital increase of up to €50 million, through the issuance of a convertible financial instrument with an option to participate in profits.
The two airlines already had a three-year partnership and decided to extend it. How the development took shape is yet to be revealed but Aegean CEO Eftihis Vassilakis and the Spanish founder of Volotea, Carlos Muñoz, both spoke of an important day and a huge opportunity that they were quick to seize.
What's being understood here is, the Volotea needed capital to expand its activities. Aegean had the money (cash reserves of more than 700 million euros) and very cleverly decided to invest, as Volotea is also studying its listing on a stock exchange in the next 2-3 years.
Subject to specific conditions, mainly related to Volotea's financial performance in 2024, a second disbursement of this financial instrument may be made, in the second quarter of 2025, amounting to up to €50 million, in which Aegean will also participate with an amount of €25 million.
If the investment proceeds to the second phase in 2025, stake will reach 21% and in this case it will have one member on the Board of Directors, with voting rights.
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Aegean Airways S.A. (hereinafter referred to as "Aegean") is pleased to announce its investment of €25 million. Volotea S.L., one of Europe's leading low-cost carriers with headquarters in Barcelona, Spain. Volotea started operations in 2012 and operates from 22 bases, mainly in France, Italy and Spain, serving more than 450 routes, focusing mainly on seasonal, shorter routes and leisure markets, which had no previous direct coverage and on which it offers new connections.
In 2023, it carried €10.3 million. passengers with a fleet of 41 Airbus A320/A319 aircraft. The bases in the markets of France, Italy and Spain represent about 90% of its total activity with the markets of Greece and Germany constituting the remaining 10%.
The initial investment of €25 million. is realized through the joint participation of Aegean with Volotea's existing shareholders in a capital increase of up to €50 million. through the issuance of a convertible financial instrument (loan) with the option to participate in profits.
Subject to specific conditions, mainly related to Volotea's financial performance in 2024, a second disbursement of this financial instrument of up to €50 million may be made in the second quarter of 2025, in which Aegean will also participate with an amount of €25 million.
Therefore, the total capital increase may amount to up to €100 million, with Aegean's participation amounting to €50 million. In case the initial participation of Aegean's first disbursement is converted into shares, then its investment will be equivalent to a 13% stake in Volotea, while in case the second tranche is disbursed and subsequently converted into shares, then Aegean's total stake in Volotea will rise to 21%.
At the same time, Aegean and Volotea signed a Memorandum of Understanding to explore new opportunities for cooperation in distribution as well as other commercial sectors, with the aim of more effectively exploiting the synergies between the two companies.
Specifically, the commercial cooperation will initially focus on the distribution of one carrier's products from the other's website, as well as on the further exploitation of the international network from/to Greece's regional airports, such as Heraklion, Rhodes, Chania, to/from key European markets such as France, Italy and Spain, in order to offer more choices to passengers by making more efficient use of the resources and investment of the two companies.
Finally, the two companies agreed to make every effort to cooperate in the areas of Maintenance and Crew Training services to cover part of Volotea's needs by the Aegean Group.
During the press conference in Athens, on Monday, Aegean Airlines Chairman Eftichios Vassilakis, CEO Dimitris Gerogiannis, and Volotea’s founder and CEO Carlos Munoz presented the two companies’ goals, which included reinforcing the growth potential as well as gradually creating synergies between the two carriers and enhancing their competitiveness in the Southern European market.
Aegean's Chairman of the Board of Directors, Eftichios Vassilakis, stated:
"Aegean and Volotea have different business models and product philosophy, but to a large extent they complement each other and share the same customer-centric philosophy. We invest in Volotea as we believe in the company's strategy and growth prospects, but also aiming to strengthen the distribution and coverage of important markets (such as France, Italy and Spain) as well as to offer direct connections to Greece's regional airports."
"Carlos Muñoz and his team have done an excellent job of consolidating the company and its network and we are very pleased to join existing shareholders in this investment by providing capital for the further development of the company. We are also convinced that in the future more synergies can be created as long as the two teams work together and exploit their potential."
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Carlos Muñoz, founder and CEO of Volotea, said:
"Today is a very important day for Volotea as the capital enhancement marks an important financial milestone for us, achieved with the support of our shareholders and Aegean's investment."
"We have known and worked with Aegean and its team for many years now and share the same philosophy, values and vision regarding the European aviation industry. We are very happy about this new step and look forward to a successful cooperation."
