AEGEAN Invests €25 Million in Volotea, Enhances Greek Regional Airport Links

Photo source: AEGEAN

Greece’s flag carrier Aegean Airlines (AEGEAN) announced on Tuesday a 25 million euro investment in Volotea, a European low-cost carrier based in Barcelona, Spain.

At a press conference, AEGEAN revealed that the initial 25-million-euro investment will be made through a profit-participating loan that can be converted into shares, as part of a larger capital increase of up to 50 million euros for Volotea. This investment will see AEGEAN join existing shareholders in this capital raise.

Should AEGEAN’s contribution from the first tranche be converted into shares, it would result in a 13 percent stake in Volotea. If a second tranche is also completed and converted, AEGEAN’s overall stake in Volotea could reach up to 21 percent.

AEGEAN CEO Dimitris Gerogiannis, Volotea Founder and CEO Carlos Muñoz and AEGEAN Chairman Eftichios Vassilakis. Photo source: AEGEAN

“Today is a milestone for Volotea, as this capital injection represents a significant financial advancement with our shareholders and the inclusion of AEGEAN as both a strategic and financial partner,” said Volotea Founder and CEO Carlos Muñoz.

Additional cooperation and benefits

AEGEAN and Volotea have also signed a Memorandum of Understanding (MoU) to enhance cooperation in distribution and other commercial areas, with the goal of leveraging synergies between the two airlines.

“AEGEAN and Volotea may have different operating models and products, but they complement each other in many ways and share a customer-focused philosophy,” said AEGEAN Chairman Eftichios Vassilakis.

Initially, the commercial collaboration between the two airlines will focus on cross-selling each other’s products through their respective websites. The partnership aims to further develop and utilize the international network connecting Greek regional airports, such as Heraklion, Rhodes and Chania, with key European markets including France, Italy, and Spain. This approach seeks to provide more options for customers while optimizing the efforts and investments of both airlines.

Moreover, the two companies will explore opportunities for cooperation in providing Maintenance, Repair, and Overhaul (MRO) services, as well as Flight Simulator Training, utilizing AEGEAN’s Group resources to address some of Volotea’s needs in these areas.

Founded in 2012, Volotea operates from 22 bases primarily in France, Italy, and Spain, serving over 450 routes with a focus on direct flights to underserved and seasonal leisure markets. In 2023, the airline transported 10.3 million passengers using a fleet of 41 Airbus A320/A319 aircraft. While its bases in France, Italy, and Spain account for approximately 90 percent of its operations, Greece and Germany together represent the remaining 10 percent.