The Spanish government approved on Tuesday a E475m 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. The package will comprise a E240m equity-backed loan and a E235m regular loan, government spokeswoman Maria Jesus Montero told a news conference. In return, the government will have a say on Air Europa’s potential sale to IAG, the spokeswoman said, without giving details on what role Madrid would want to play. IAG agreed to buy Air Europa for E1b last November, but is seeking to reduce the price amid the travel crisis caused by the pandemic. Montero told reporters the government “reserved the right to give an opinion and decide criteria” on the possible deal, without elaborating. She also said the government wanted to participate in the nomination of the airline’s chief executive and in any layoff plans. “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,” Montero said after a weekly cabinet meeting, adding the number of flights operated by the airline plunged 95% in Q2.<br/>
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Pilots at KLM Tuesday agreed to government wage demands, clearing the way for the airline to receive badly needed state support. “The path is now clear for (Finance Minister Wopke) Hoekstra to determine whether the demands have been met” to receive E3.4b in government-backed support, KLM said. The pilots’ trade union had previously agreed to wage cuts until March 2022, but the government on Friday demanded an immediate guarantee that wages would be frozen for an additional three years. Their initial refusal threatened to derail the emergency aid needed to help KLM through the coronavirus crisis. However, an agreement was ultimately reached on Tuesday between the union and KLM’s management. “We will live up to the trust that the Dutch government is placing in us,” said KLM CE Pieter Elbers. <br/>
Garuda Indonesia has been certified to transport coronavirus vaccines in Indonesia, the site of Southeast Asia’s largest outbreak. The certification, based on criteria set by the WHO, was given by state-owned supervisory company Sucofindo last month, the airline said. The carrier has sought alternative sources of revenue to weather the drop in passenger traffic, adding routes to transport fresh tuna to Tokyo and other commodities to Singapore. It will strengthen its cargo infrastructure to be ready for Indonesia’s vaccine roll-out, Garuda said. Indonesia’s government is putting together a roadmap to distribute the shots to its 270m population spread across the world’s largest archipelago. With more than 410,000 confirmed virus cases so far, the biggest in Southeast Asia, businesses and consumers are holding back from spending and investments.<br/>