Aegean’s decision to invest in Volotea – What the agreement includes

With a new strategic investment in the Spanish low cost, it strengthens its extroversion. With this investment Aegean strengthens its presence and extroversion to major markets in southern Europe such as France, Spain and Italy, as 92% of Volotea’s activity focuses on these markets. In particular, what the AEGEAN strategic cooperation with Volotea provides for: the direct participation of AEGEAN with EUR 25 million, in an increase in capital, along with Volotea’s existing shareholders with a loan converted into shares totalling up to EUR 50 million. The aim is to strengthen Volotea’s development potential. The agreement also provides for the possibility, subject to conditions, of a second tranche of Volotea’s capital increase, again with a convertible loan, in the 1st half of 2025, for up to EUR 50 million, and again together with the existing shareholders of Volotea, in which AEGEAN will participate with an additional 25 million. The total capital increases with the convertible loan can eventually reach EUR 30/6/2026 to EUR 100 million for VOLOTEA to which AEGEAN would have contributed a total of EUR 50 million. strengthening trade cooperation between the two companies for cross selling through the same distribution and sales channels (mainly websites), increasing common code flights to enhance the commercial presence of the two companies in the markets they operate. the joint development and operation of routes abroad from/to the regional airports of the country through a 5 year agreement (originally during the first 2 years from/to Heraklion, Chania and Rhodes), towards the 3 main markets that Volotea has bases and presence (France, Italy, Spain). This process will involve joint network planning, coordination of flights in order to be more efficient and give more choices to customers and to take advantage of these flights. the investigation by the two companies of the ability to serve part of Volotea’s needs for the use of flight simulators, but also maintenance services of part of its aircraft at the new training centre and the new technical basis of AEGEAN. AEGEAN even if the second phase of the capital increase is completed in 2025, it will remain a minority shareholder, Volotea. The majority remains in the group of the original shareholders of Volotea. At the same time, Volotea’s management remains unchanged, led by Carlos Muñoz’s founder and CEO. “AEGEAN and Volotea have different business models and product philosophy but largely operate complementary and share the same customer-centric philosophy. We invest in Volotea as we believe in the company’s strategy and development 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” stressed, among other things, at yesterday’s press conference of the agreement, the President of the Board of Directors of AEGEAN, Mr. For his part, Volotea founder and CEO Carlos Muñoz said: “It’s a very important day for Volotea as strengthening funds marks an important economic milestone for us, which was achieved with the support of our shareholders and the investment of AEGEAN. We have known and worked with AEGEAN and its team for many years now and we share the same philosophy, values and vision of the European aviation industry. We are particularly happy for this new step and we look forward to a successful cooperation.” The advantages of investment AEGEAN looks forward to a return on its investment at a depth of 3-5 years from the participation, while at the same time enhancing its presence and extroversion to major markets in Southern Europe such as France, Spain and Italy, as 92% of Volotea’s activity focuses on these markets. It takes advantage of Volotea’s comparative advantages, which is a low-cost company with a skilled and efficient operating model. Volotea is distinguished by the unique comparative advantages of efficiency that make it separate from other low-cost airlines. Finally, AEGEAN thus participates in the overall trend of strategic participations, partnerships, acquisitions and mergers recorded on the European aviation market, particularly after Covid. All major or full service airlines, whether they have created, or have bought, or cooperate with low-cost companies, which in particular parts of the network, specific consumer needs, are more suitable. Pilot Training and Aircraft Maintenance Services The two companies will explore the possibility of an agreement to serve some of Volotea’s needs to maintain its fleet at the AEGEAN Flight Maintenance Services Centre and the training of its pilots and crews at the Flight Simulators Center created by AEGEAN in collaboration with CAE, the leading airline worldwide in the aviation training industry for pilots and cabin crews. Source: RES – ICM