In November 2020, Air Europa secured a crucial public financing contract with the State Company for Industrial Participations (SEPI) to help it survive the challenges posed by the Covid-19 pandemic. The aid, worth €475 million, was the largest granted by the Fund to Support the Solvency of Strategic Companies (FASEE). However, allegations have emerged linking President Pedro Sanchez’s partner Begoña Gomez to favorable treatment towards Air Europa in securing public support. These allegations have been refuted by members of the Executive and a complaint has been filed against Begaña Gomez for alleged influence peddling.
The aid to Air Europa required rigorous auditing and evaluation of its eligibility and viability plans. The SEPI demanded extensive guarantees from the Hidalgo family, owners of Air Europa, to secure the public funds. The conditions of the loans included fixed and variable interest rates with strict repayment terms. The SEPI’s involvement in Air Europa’s management includes representation on its board and approval for key decisions related to its operations. It also has significant influence over important matters such as financial transactions, sales of assets, and collaboration agreements.
Despite facing financial difficulties, Air Europa has managed to maintain its operations thanks to government support and other financing sources. Its future partnership with SEPI remains crucial for Spain’s aviation industry.
