Another important step to further strengthen its extroversion is the new strategic investment and cooperation of Aegean with the Spanish low cost, Volotea.

With this investment, the largest domestic carrier strengthens its presence and its extroversion in large markets of Southern Europe such as France, Spain and Italy, since 92% of Volotea’s activity focuses on these markets.

What does the agreement provide?

In particular, AEGEAN’s strategic partnership with Volotea provides for:

– the direct participation of AEGEAN with 25 million euros, in a capital increase, together with the existing shareholders of Volotea with a loan convertible into shares for a total amount of up to 50 million euros. The aim is to strengthen Volotea’s growth dynamics. The agreement provides, and the possibility, subject to conditions, of a second installment in Volotea’s capital increase, again with a convertible loan, during the 1st half of 2025, for up to 50 million euros, again together with the existing shareholders of Volotea, in which, if it takes place, AEGEAN will also participate with an additional 25 million. The total capital increases with the convertible loan can finally reach 100 million for VOLOTEA by 30/6/2026, to which AEGEAN will have contributed a total of 50 million euros.

– the strengthening of the commercial cooperation between the two companies for cross selling through the same distribution and sales channels (mainly the websites), the increase of common code flights, in order to strengthen the commercial presence of the two companies in the markets in which they operate.

– the joint development and exploitation of international routes from/to the country’s regional airports through a 5-year agreement (initially during the first 2 years from/to Heraklion, Chania and Rhodes), to the 3 main markets where the Volotea (France, Italy, Spain). This process will involve joint planning of the network, coordination of flights to be more efficient and give more choice to customers and co-operation of these flights.

-the investigation by the two companies of the possibility of serving part of Volotea’s needs for the use of flight simulators, but also maintenance services for part of its aircraft in the new training center and the new technical base of AEGEAN. AEGEAN, even if the second phase of the capital increase is completed in 2025, will remain a minority shareholder of Volotea. The majority remains in the group of original shareholders of Volotea. At the same time, Volotea’s management remains without any differentiation, under the leadership of its founder and CEO Carlos Muñoz.

“AEGEAN and Volotea have different business models and product philosophies, but to a large extent they operate in a complementary manner and share the same customer-centric philosophy. We invest in Volotea as we believe in the company’s strategy and growth prospects, but also aiming 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 emphasized among other things , at yesterday’s press conference announcing the agreement, the chairman of the Board of Directors of AEGEAN, Mr. Eutychios Vassilakis.

For his part, Volotea’s founder and CEO, Mr. Carlos Muñoz, said: “It is a very important day for Volotea as the capital increase marks an important financial milestone for us, which was achieved with the support of our shareholders and the AEGEAN investment. We have known and worked with AEGEAN and its team for many years now and share the same philosophy, values ​​and vision for the European aviation industry. We are particularly happy about this new step and look forward to a successful collaboration.”

The advantages of investment

AEGEAN expects a return on its investment in 3-5 years from the participation, while at the same time strengthening its presence and its extroversion in large markets of Southern Europe such as France, Spain and Italy, given that 92% of Volotea’s activity focuses on specific markets. It utilizes the comparative advantages of Volotea, which is a low-cost company with a specialized and efficient operating model. Volotea stands out for its unique comparative efficiency advantages that set it apart from other low-cost airlines. Finally, AEGEAN in this way participates in the general trend of strategic participations, partnerships, acquisitions and consolidations recorded in the European aviation market, particularly after Covid. All major or full service airlines have either created, acquired, or cooperate with low-cost companies that are more suitable for specific parts of the network, specific consumer needs.

Pilot Training and Aircraft Maintenance Services

The two companies will explore the possibility of an agreement to serve part of Volotea’s needs for the maintenance of its fleet at the AEGEAN Aircraft Maintenance Services Center and the training of its pilots and crews at the Flight Simulator Center that AEGEAN has established in cooperation with CAE, the world leader in aviation training for pilots and cabin crew.

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