ATHENS – Riding high with profits and again named Europe’s best regional carrier, Aegean Airlines is using some of that to invest at least 25 million euros ($27.71 million) in Spain’s budget Volotea Airlines.

If the Spanish carrier performs financially by the end of 2024 then Aegean will put in another 25 million euros, it stated in an announcement of the agreement that will include shareholders from both airlines, said Naftemporiki.

https://www.naftemporiki.gr/english/1756878/aegean-invests-25-million-euros-in-volotea/

The initial is being made in a joint participation through the issuance of a convertible financial instrument (loan) with the right to participate in the profits that could total 100 million euros ($110.81 million) in a capital increase.

If the initial participation of Aegean’s first disbursement is converted into shares, then its investment will be equivalent to a 13 percent and could rise to 21 percent if a second tranche occurs and later converted into shares, the report said.

Aegean and Volotea signed a Memorandum of Cooperation to explore new cooperation opportunities in distribution as well as in other commercial areas, first focused on the availability of one carrier’s products from the other’s website, as well as the further exploitation of the international network from/to the regional airports of Greece, such as Heraklion, Rhodes, Chani,” to markets such as France, Italy and Spain.

They also agreed to cooperate in the areas of providing maintenance services as well as crew training in order to cover part of Volotea’s needs from the Aegean Group with the Greek carrier expanding its interests into the Spanish airlines territory.

“AEGEAN and Volotea have different business models and product philosophies but to a large extent they operate in a complementary way and share the same customer-centric philosophy,” said Aegean Board Chairman Eftyhios Vassilakis.

“We invest in Volotea as we believe in the company’s strategy and growth prospects, but also aim to strengthen the distribution and coverage of important markets (such as France, Italy and Spain), as well as the possibility of offering direct connections to the regional airports of Greece,” he said.

Aegean said it expects a return on its investment in 3-5 years from the participation, while at the same time strengthening its presence in key southern European markets a short hop from Greece.