Spain approves E475m aid package for Air Europa

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/>