The Council of Ministers has approved this Tuesday the injection of 111 Million Euros of public funds to the regional airline Air Nostrum, coming from the Solvency Assistance Fund for Strategic Companies, which is managed by the state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI).
The operation, which was approved just a week ago by the SEPI’s Fund’s Management Board, will be channeled entirely through a participative loan.
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According to the Executive, before approving the temporary injection of public funds, an “exhaustive and rigorous” analysis of the economic and legal situation of the airline has been carried out, as well as the impact that the pandemic has had on its business and the viability plan presented to access the fund.
Air Nostrum, incorporated in 1994, is an airline specializing in passenger transport, based in the Valencian Community, which in 2020 experienced a drop in sales of 40% and losses of 144 million euros due to the fall in activity resulting from covid-19.
In 2019 it recorded a turnover of 539 million and directly employed 1,400 people and 2,100 indirectly.
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The group has four other lines of business: management support services and consulting, aircraft maintenance, aeronautical training and integrated crew management and scheduling.
Air Nostrum is one of the five most important companies in the Valencian Community, it feeds and distributes the Iberia Group’s traffic in the Madrid hub and provides service on routes classified as Public Service Obligations,
With this operation, the Government has already given the green light to a total of 22 operations through this fund, which was created on July 3, 2020 to support strategic companies with financial difficulties caused by the pandemic and has an endowment of 10,000 million euros.
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