Spanish government approves 475 million aid package for Air Europa.
The Spanish government approved on Tuesday a 475 million euro aid package for Air Europa, making the airline the first major Spanish company to tap into funds established to help companies in strategic sectors weather the pandemic.
See also: One year later, Iberia expects state aid to Air Europa to close the purchase.
The package will include a loan of 240 million euros backed by equity capital and a regular loan of 235 million euros, government spokeswoman Maria Jesus Montero said at a press conference, Reuters reported.
Air Europa will have a maximum of six years to repay the loans, Montero told reporters after a weekly cabinet meeting.
See also: Air Europa will double its flights to Latin America by the end of the year.
In exchange for the aid, the government will want a say in the possible sale of Air Europa to IAG, the spokeswoman said, without going into details about the role Madrid would like to play.
Iberia’s owner, IAG, which agreed to buy Air Europa for 1 billion euros in 2019, said last week that it was still interested in carrying out the deal.
“In the case of Air Europa, the impact of the pandemic is evident, due to the drastic reduction in air traffic caused by reduced mobility and fewer tourist arrivals,” said Montero, adding that the number of flights operated by the airline was reduced by 95% in the second quarter.
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