AEGEAN Airlines has announced a €25 million investment in Volotea by participating in a capital increase through a convertible loan with existing Volotea shareholders.
On Tuesday (September 3, 2024), AEGEAN Airlines announced that they have made a €25 million investment in Barcelona-based LCC Volotea, as part of a capital increase through a convertible loan jointly with existing Volotea shareholders. Launched in 2012, Volotea primarily operates out of 22 bases across France, Italy and Spain, serving over 450 routes, with a fleet of 41 Airbus A319/320 aircraft. During 2023, Volotea carried 10.3 million passengers.
In Tuesday’s announcement, AEGEAN’s Chairman, Eftichios Vassilakis, said,
“AEGEAN and Volotea may have different operating models and products but are in many ways complimentary and share a customer focused philosophy. 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 3 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. Carlos Muñoz and his team have done a great job building the company and its network and we are very happy to join the other shareholders of Volotea in providing the capital for its development. Also, we firmly believe that going forward, as the two teams cooperate and understand each other’s capabilities, more opportunities for cooperation and synergies will be generated.”
Also commenting on AEGEAN’s investment, Volotea’s Founder and CEO, Carlos Muñoz, added,
“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.”
AEGEAN’s initial €25 million investment is part of Volotea’s overall capita increase of up to €50 million in the company via a profit participation loan which will be convertible into shares. Based on Volotea’s 2024 financial performance and other factors, there may be a second tranche of the convertible loan during the second quarter of 2025 for up to €50 million, in which AEGEAN would invest an additional €50 million. If AEGEAN’s first tranche investment is later converted into shares, it would represent a 13 percent stake in Volotea, and if the second tranche investment is subsequently converted, AEGEAN’s total stake in Volotea could reach 21 percent.
Source: AEGEAN Airlines
To our valued readers: We have decided to enhance our visitor experience by eliminating user-targeted ads across our platform (excluding select static display ads). In order to make up for lost revenue, we are transitioning to a reader supported model, without a paywall, annoying pop-ups, or a required subscription. We thank you for your generous support!