In November 2020, Air Europa signed a public financing contract with the State Company for Industrial Participations (SEPI) that helped the airline survive the challenges posed by the Covid-19 pandemic. The aid, worth 475 million euros, was the largest granted by the Fund to Support the Solvency of Strategic Companies (FASEE). However, this financial assistance came with demanding conditions and strict guarantees for Globalia airline.
The involvement of SEPI in Air Europa’s management includes representation on the company’s board and approval for key decisions related to its operations. The SEPI has a significant influence on important matters such as financial transactions, sales of assets, and collaboration agreements.
Despite these challenges, Air Europa has managed to sustain its operations with support from SEPI and other financing sources. However, this financial assistance has necessitated tough decisions and close oversight from the government to ensure its survival. The future of Air Europa and its partnership with SEPI remain crucial for the aviation industry in Spain.
There have been allegations linking President Pedro Sanchez’s partner Begoña Gomez to favorable treatment towards Air Europa in securing public support. These allegations were refuted by members of the Executive. A complaint was filed against Begoña Gomez for alleged influence peddling, which is currently under investigation. The President responded to these allegations by suspending his agenda and considering a possible resignation.
The aid provided to Air Europa required extensive auditing and evaluation of its eligibility and viability plans. The SEPI demanded strict guarantees from the Hidalgo family, owners of Air Europa, to secure public funds. The conditions of the loans included fixed and variable interest rates with strict repayment terms.
Overall, Air Europa’s financial struggles have highlighted the need for tough decisions and close oversight from governments to ensure their survival in times of crisis.