The state-owned SEPI has provided crucial financial support to Air Europa through a public financing contract signed in November 2020. This was the largest aid granted by the Fund to Support the Solvency of Strategic Companies (FASEE) during the Covid-19 pandemic. However, allegations have emerged that President Pedro Sanchez’s partner, Begoña Gomez, may have played a role in securing favorable treatment for Air Europa. These claims have been refuted by members of the Executive and are currently under investigation.
The airline received €475 million in aid, which came with strict conditions and guarantees from the Hidalgo family, owners of Air Europa. The SEPI demanded extensive auditing and evaluation of the airline’s eligibility and viability plans before providing any financial support. The loans included fixed and variable interest rates with strict repayment terms. In addition to providing financial support, the SEPI also has representation on Air Europa’s board and approval for key decisions related to the company’s operations. This gives them significant influence over important matters such as financial transactions, sales of assets, and collaboration agreements.
Despite facing significant challenges due to the Covid-19 pandemic, Air Europa has managed to sustain its operations with support from various financing sources including SEPI. The government had to make tough decisions and closely oversee the company’s operations to ensure its survival. The future of Air Europa and its partnership with SEPI remain crucial for Spain’s aviation industry.
The public financing contract between Air Europa and SEPI has been critical in helping Air Europa survive during challenging times caused by Covid-19 pandemic. The aid amounted to €475 million and was one of the largest granted by FASEE during this period. The conditions of aid were demanding with strict guarantees for Globalia airline.
There have been allegations suggesting that President Pedro Sanchez’s partner Begoña Gomez played a role in favorable treatment towards Air Europa while securing public support. These allegations have been refuted by members of the Executive but are currently under investigation.
To secure funding from FASEE, SEPI demanded extensive auditing and evaluation of Air Europa’s eligibility plans along with significant guarantees from Hidalgo family owners of Air Europe.
The loan terms included fixed and variable interest rates along with strict repayment terms.
In addition to providing financial assistance, SEPI also had representation on Air Europa’s board along with approval for critical decisions related to its operations.
Air Europa faced significant challenges due to Covid-19 pandemic but managed to sustain its operations thanks to government oversight along with various financing sources including SEPI.
The future of Air España remains crucial for Spain’s aviation industry due to its partnership with SEPI following Covid-19 pandemic challenges