Volotea And Abra Group Announce Joint Venture Agreement To Strengthen Connectivity Between Europe And The Americas
Through this partnership, both companies will explore commercial and operational opportunities together to preserve and expand connectivity between Europe and the Americas.
The complementary nature of Volotea's short-haul operations in Europe and the long-haul and intra-Americas operations of Abra Group —which includes airlines Avianca and GOL— make this alliance an optimal and integral solution to act as a ‘remedy taker’ in the merger between IAG and Air Europa.
The joint venture structure will allow the companies to offer a unified product to their customers in both Europe and the Americas, providing connectivity between any point in their respective networks with a single ticket.
Additionally, this collaboration will consolidate Madrid's position as a connection hub and reinforce Spain's status as a top destination.
Madrid, June 25th, 2024 –Volotea, the Spanish airline with the most extensive route network in Europe, and Abra Group, a leading airline consortium in Latin America, which includes companies such as Avianca and GOL, have announced a joint venture to develop commercial and operational opportunities together. The complementary nature of Volotea's short-haul operations and Abra Group airlines' long-haul and intra-Americas services make this alliance a comprehensive solution, positioning it as the best alternative to act as a ‘remedy taker’ in the merger between IAG and Air Europa, offering European and Latin American consumers more alternatives at better prices.
This strategic agreement between Volotea and Abra Group aims to facilitate short and long-haul connections and strengthen Spain's connectivity with Europe, the Americas, the Caribbean, and the rest of the world. The solution proposed by both companies is an efficient and flexible plan that ensures Volotea's passengers can arrive at Madrid Airport from the airline's various bases and operational cities across Europe and the Middle East, providing them with access to intercontinental flights marketed by Abra’s airlines, along with their extensive networks in the Americas and the Caribbean.
This alliance, presented as a clear and competitive alternative, guarantees an enhanced, high-quality service that will aid in consolidating Madrid as a hub for national, international, and intercontinental air routes and will contribute to reinforcing Spain's position as a destination. Furthermore, this measure will allow Madrid to have another operator, ensuring competition on routes to and from the Americas, attracting passengers from Europe to Latin America, North America, and the Caribbean, and boosting tourism in the reverse direction. The commercialization will be carried out through various distribution channels, ensuring broad dissemination and access to the services offered, with more than 30 destinations within Europe and over 130 in the Americas.
This alliance will optimize connectivity options to benefit millions of passengers by integrating Volotea's European routes with Abra's destinations in Latin America, North America, and the Caribbean. It will also ensure a constant flow of travelers and offer a coordinated, unified, high-quality experience at competitive prices. If the IAG and Air Europa merger is approved and Volotea and Abra Group are designated as 'remedy takers,' Volotea will establish a base of operations in Madrid with approximately 20 aircraft to service all short-haul routes.
Carlos Muñoz, Founder and CEO of Volotea, said: “We are very happy to announce this historic and groundbreaking joint venture agreement between our two companies today. Abra Group, with Avianca and GOL airlines, is one of the two leading groups in Latin America, and combining their strength with our network of over 450 routes in Europe will provide great opportunities for all European and Latin American consumers. This alliance will not only strengthen our operations but also allow us to offer better service to our passengers, contribute to economic growth, and improve connectivity between different regions, always through Madrid. This agreement is just a first step, and both companies are committed to growing in the medium and long term, as well as in destinations and flights, providing customers with more and better options.”
Adrian Neuhauser, CEO of Abra Group, stated: “The joint venture we are presenting today is a distinctive solution that will benefit millions of travelers with an expanded network, a unified product, quality service, and competitive prices. Through Avianca and GOL, we will offer more than 250 aircraft, more than 130 destinations, and leading loyalty programs like LifeMiles and Smiles across two continents, further leveraging the strategic investment we have announced in Wamos Air. Our strong presence in North America, Latin America, and the Caribbean, combined with Volotea's extensive reach, will undoubtedly improve connectivity between the Americas and Europe.”
Volotea closed the last fiscal year with a revenue of €694 million, 24.6% higher than the previous year. For 2024, revenue is expected to exceed €800 million, making it the most profitable year in the company's history. The company anticipates transporting around 12 million passengers this year, offering more than 450 routes across 18 European countries.
Meanwhile, Abra Group transports more than 62 million passengers annually with a fleet of over 250 aircraft—including single-aisle, wide-body, and freighters—connecting to more than 130 destinations in over 25 countries across the Americas and Europe, generating around €8 billion in annual revenue.