Greek flag carrier Aegean Airlines has announced a significant investment of €25 million in Volotea, a leading European low-cost airline based in Barcelona, Spain. Volotea, which commenced operations in 2012, currently operates from 22 bases, predominantly in France, Italy, and Spain, serving over 450 routes.
The airline focuses primarily on seasonal, shorter routes and leisure markets, offering new connections to previously underserved destinations.
In 2023, Volotea carried 10.3 million passengers with a fleet of 41 Airbus A320/A319 aircraft. The airline's bases in France, Italy, and Spain account for approximately 90% of its total activity, with the Greek and German markets comprising the remaining 10%.
Aegean's initial investment of €25 million is being made in conjunction with Volotea's existing shareholders in a capital increase of up to €50 million. This investment takes the form of a convertible financial instrument (loan) with profit participation rights.
Subject to certain conditions, primarily related to Volotea's financial performance in 2024, a second disbursement of up to €50 million may be made in the second quarter of 2025, in which Aegean would also participate with an amount of up to €25 million.
Consequently, the total capital increase could reach up to €100 million, with Aegean's participation amounting to €50 million.
If Aegean's initial participation in the first disbursement is converted into shares, its investment would equate to a 13% stake in Volotea. In the event that the second tranche is also disbursed and subsequently converted into shares, Aegean's total stake in Volotea would rise to 21%.
In addition to the investment, Aegean and Volotea have signed a Memorandum of Understanding to explore new opportunities for cooperation in distribution and other commercial areas, with the aim of maximizing synergies between the two companies.
Specifically, the commercial cooperation will initially focus on the distribution of each airline's products through the other's website, as well as on further exploiting the international network to and from regional airports in Greece, such as Heraklion, Rhodes, and Chania, to and from key European markets such as France, Italy, and Spain. The goal is to offer passengers more choices while making the most efficient use of both companies' resources and investments.
This investment is expected to strengthen Aegean's position in the European aviation market and provide new growth opportunities for both companies.