Volotea is facing a strategic crossroads after its Greek partner formally refused to take control of the company. The Greek airline, controlled by the Laskaridis family, owners of Astican, and holding a cash position approaching €1 billion, prefers to preserve its liquidity while implementing an eight-month cost-containment plan to cushion the impact of higher fuel prices on its own routes.
Aegean Airlines’ management has publicly ruled out converting debt into equity stakes to absorb the low-cost carrier founded by Carlos Muñoz. The decision puts speculation about a corporate integration on hold and leaves the Spanish airline to undertake a far-reaching financial and operational restructuring on its own to ensure the viability of its routes.
Aegean’s denial follows an analysis published by specialist website CH Aviation, which identified the conversion of liabilities into share capital as a possible rescue route. The Greek airline’s leadership, headed by Dimitri Gerogiannis, has closed the door to increasing its exposure to the Spanish company’s financial structure.
Despite declining the debt-for-equity swap, the Greek operator will maintain the commercial and operational cooperation agreements established to date. Aegean currently holds a 20% stake in Volotea and is among its main private creditors, with an outstanding balance of €56 million. Meanwhile, Volotea’s management has declined to comment on the position adopted by its Greek partner.
Aegean’s refusal comes amid severe operational pressure caused by soaring aviation fuel prices. Higher jet-fuel costs have created a budget shortfall of nearly €150 million in Volotea’s income statement. This financial deviation has accelerated the adoption of drastic cost-cutting measures to ease the company’s financial burden before the end of the current year.
The contingency program drawn up by management includes the dismissal of 50 employees assigned to the airline’s headquarters operations in Barcelona. Operationally, the company will reduce its fleet from 40 aircraft to between 30 and 35 in active service, returning or grounding up to 10 aircraft to cut fixed costs.
Alongside the spending cuts, Volotea has opened two negotiating tracks to stabilize its cash position and avoid crippling liquidity pressures. On the one hand, the company is negotiating the repayment schedule for its outstanding debt with its banking and institutional creditors, including the State Industrial Holdings Company (SEPI). On the other, management is exploring the entry of new investor partners through a capital increase that would inject fresh funds into the group’s coffers.
The airline’s management has set December as the deadline for concluding the refinancing agreement with SEPI and the banking syndicate. The outcome of these talks and the raising of new capital will be decisive in redefining the airline’s future size and maintaining its operations in the European aviation market.
The article Aegean (Laskaridis) Halts Volotea Bailout, Forcing the Airline Into Drastic Restructuring was first published on canarymaritime.com.
