Spain’s Air Europa gets official government approval for bailout loan

STRUGGLING carrier Air Europa is get a life-saving boost of €465 million from the Spanish government.

The loan, which has to be repaid by 2026, was approved today(November 3) by the Spanish cabinet.

The money will be filtered through the state-supported SEPI(Sociedad Española de Participaciones Industriales), which has a €10 billion fund to help firms hit by the coronavirus pandemic.

It’s the first Spanish company to benefit from SEPI after it gave it the nod for the bailout in September ahead of official rubber-stamping by the national government.

Along with all other carriers, Air Europa has been badly hit by drop in passengers demand this year caused by the health crisis.

It operates a range of domestic and European services as well as linking key centres in Central and South America with Madrid.

One of the conditions for the SEPI money being loaned was the company producing a new viability plan.