Aegean Invests $27.5 Million In Spanish Low-Cost Volotea

Greek carrier Aegean Airlines has announced an investment of €25 million ($27.5 million) in Spanish low-cost airline Volotea. This is part of a larger capital infusion in which other existing shareholders of Volotea are also participating. Aegean has also commented on a possible second investment in Volotea next year based on how it performs financially in 2024.

Aegean invests in Volotea

Aegean Airlines

has invested €25 million ($27.5 million) in Barcelona-based budget carrier Volotea. The capital is part of a larger fundraise involving Volota’s existing shareholders, totaling €50 million ($55 million).

Aegean has made the investment through a profit participating loan which will later be converted into shares. But Volotea could get another round of investment next year, with Aegean saying that it could infuse an additional €25 million as part of another €50 million funding, subject to various conditions primarily related to the financial performance of Volotea in 2024.

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When Aegean’s current investment is later converted into shares in Volotea, it will command a 13% stake in the airline. If the Greek carrier ends up investing more next year, its share in Volotea could potentially reach 21%. Carlos Muñoz, Founder and CEO of Volotea, commented,

“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 toward European airline consolidation. We are extremely happy with this new step in our successful partnership together.”

Strengthening partnership

Aegean Airlines plans to take its partnership with Volotea beyond an investment and is looking to join forces for mutually beneficial deals. The two airlines have entered into a Memorandum of Understanding for cooperation in distribution and other commercial areas.

For example, they will start with cross-selling each other’s products through their websites while also looking to jointly develop and exploit the international network from Greek regional airports, such as Heraklion, Rhodes, and Chania, to key European markets, such as France, Italy, and Spain.

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There’s also a plan in the pipeline to explore cooperation for MRO and Flight Simulator Training services by Aegean’s Group to assist Volotea in these departments.

Aegean’s Chairman, Eftichios Vassilakis, acknowledged that while the two airlines have different operating models and products, they are complementary in many ways. He said that Aegean’s decision to invest in Volotea is based on the belief that the budget carrier has an expandable model and that it will also help Aegean expand its reach into crucial markets such as France, Italy, and Spain.

About Volotea

Aegean’s decision to invest in Volotea is largely because it sees potential in the carrier’s future. The Spanish low-cost carrier was founded in 2011 and started operations a year later. Today, it operates out of 22 bases and has a network of more than 450 routes.

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Volotea has a fleet of more than 40 Airbus narrowbody planes and carried 10.3 million passengers in 2023. Almost 90% of its operations are in France, Italy, and Spain, with the remaining in Greece and Germany.