Air Nostrum seeks €103 million of government aid

Air Nostrum is seeking E103m of government financial support due to the impact of the pandemic on its operations. The Spanish carrier says it made an approach on 16 April to state-owned holding company SEPI to take advantage of the country’s solvency support fund for strategic businesses. It says it intends to repay the loan over seven years. Valencia-based Air Nostrum says it needs the financing to “maintain connectivity and protect employment”. It adds that the delayed economic recovery due to the length of the pandemic has led the company to claim the temporary financial support. Noting six consecutive, previous years of profit, the Iberia franchise carrier says it incurred a E129m loss in 2020 as a result of the Covid-19 pandemic. Since the beginning of the coronavirus crisis and “drastic reduction” in air traffic demand, the airline has maintained a policy of “cash preservation and expenditure restraint”, it says. It has also reached agreements with aircraft lessors, and in 2020 drew on credit lines from Spain’s Instituto de Credito Oficial.<br/>