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Turkish low-cost carrier Pegasus’s recent acquisition deal with Czech-based airline Smartwings Group is expected to expand its operational footprint across Central and Eastern Europe by leveraging Smartwings’ multiple flight licenses and established destination network, according to the company.
"We’ve been working on this acquisition for about a year and a half," Pegasus Airlines CEO Guliz Ozturk said, emphasizing that the deal fits into the airline’s broader inorganic growth strategy focused on Europe, the Middle East, North Africa, and the Turkic republics in Central Asia.
Pegasus Airlines announced earlier this week that it had agreed to acquire Smartwings Group for €154 million ($179.12 million), including Czech Airlines, Smartwings a.s., and other affiliated entities. The agreement covers the entire share capital, encompassing both the group’s equity and its assumed shareholder debts.
Although headquartered in the Czech Republic, Smartwings holds four separate Air Operator Certificates (AOCs) across Czechia, Hungary, Poland, and Slovakia, Ozturk said.
"Approximately 50% of our international operations are already directed toward Europe," Ozturk explained. "These licenses will enrich Pegasus’s flight network and enable us to operate from different countries to new destinations."
Ozturk pointed out that Smartwings operates a fleet of about 47 leased aircraft, primarily Boeing models, with an average age exceeding 14 to 15 years.
By contrast, Pegasus has a younger fleet of 127 aircraft, mostly comprised of Airbus models, with only nine Boeing aircraft. While the two fleets differ in structure and age, Ozturk said Smartwings’ older, mostly leased aircraft offer room for transformation.
She also highlighted Smartwings' strong market presence and partnerships in the European tourism sector. "Smartwings is a well-known European brand with strong relationships with tour operators," she said.
"It operates flights to over 80 destinations and generated €1 billion in revenue in 2024, achieving profitability at the level of earnings before interest, taxes, depreciation, and amortization (EBITDA)."
According to Ozturk, the transaction value of €154 million may be subject to revision based on certain conditions during the closing phase. However, she noted that major changes to the agreed amount are not expected. She added that the legal process is expected to conclude by 2026.
Before the acquisition can be finalized, Pegasus must secure approvals from both civil aviation and competition authorities. The regulatory process is projected to take six to eight months.
"After the approvals, the acquisition will proceed, and then a two-year integration process will begin under a dedicated business plan," she said.
Ozturk also signaled that an external funding deal would be considered for the transaction, and a final decision will be made in the upcoming period.
Pegasus Airlines, established in 1990 and restructured under ESAS Holding in 2005, currently serves 156 destinations and reported ₺111.82 billion ($3.41 billion) in revenue for 2024. Smartwings, founded in 1997, is Czechia’s largest airline, offering flights to as many as 40 international destinations.
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