Turkish Airlines has been left as the only known contender for a stake in Spanish airline Air Europa after Germany's Lufthansa confirmed on Tuesday it had dropped its bid for the carrier.
That comes only a week after Air France-KLM announced it was also dropping out of the process.
British Airways-owner IAG holds a 20% stake in Air Europa but failed to get regulatory approval for a full takeover in 2024 after years of talks.
"After thorough analyses and intense negotiations, we have at this stage decided against further engaging in a capital contribution and shareholding in Air Europa," the Lufthansa spokesperson said.
Turkish Airlines had disclosed in a June 20 regulatory filing that it was engaged in non-binding talks to explore potential investment and partnership opportunities with Air Europa.
Globalia, the family-owned company controlling Air Europa, declined to comment. Turkish Airlines did not respond to a request for comment.
Lufthansa CEO Carsten Spohr last week said negotiations for a possible stake in Air Europa were difficult, with sources saying any proposed deal would be complex given IAG's existing stake.
The process has faced delays due in part to disagreements between members of the Hidalgo family, which owns Air Europa, and concerns from interested airlines on the structure of the deal, Reuters previously reported.
Air Europa, which flies within Spain and connects Madrid with large Spanish cities in Europe and Latin America, seeks to raise cash to repay a government loan.
Pressure has mounted on airlines to consolidate in Europe to better compete with major global rivals from the United States and the Middle East. Many are focusing on the most popular routes in southern Europe as a target for expansion.
