The public financing contract signed in November 2020 between Air Europa and the State Company for Industrial Participations (SEPI) has been crucial for the survival of the airline during the Covid-19 crisis. The aid, totaling 475 million, was the largest granted by the Fund to Support the Solvency of Strategic Companies (FASEE), aimed at supporting companies affected by the pandemic. The conditions of the aid were the most demanding, with strict guarantees required from the Globalia airline.
Allegations linking President Pedro Sánchez’s partner, Begoña Gómez, with favorable treatment towards Air Europa have been branded as false by members of the Executive. A complaint by the pseudo-union Manos Cleans against Gómez for alleged influence peddling led to legal proceedings. Despite the controversy, the Prosecutor’s Office has requested the dismissal of the complaint.
Before the approval of the public support, Air Europa underwent audits by Cuatrecasas, PwC, and the State Attorney’s Office to assess its eligibility and viability. The management council of FASEE and the Council of Ministers also reviewed the reports. The SEPI aid required stringent conditions, including SEPI’s entry into the management with representation in the Air Europa board.
The SEPI public credit was a last resort for Globalia, as the company had exhausted other financing options. The contract mandated specific allocation of funds, and SEPI’s approval was necessary for key decisions such as the sale of assets, change in the corporate structure, or appointment of auditors. The SEPI played a decisive role in the approval of significant financial and strategic decisions for Air Europa.
Air Europa had previously secured bank financing through the Official Credit Institute (ICO) before the SEPI aid. The company returned part of the loan and faced legal disputes related to the Covid-19 impact on its hotel and transportation activities. The SEPI aid agreement included fixed and variable interest rates, and SEPI’s involvement in key management decisions. The aid was crucial for Air Europa’s survival and involved significant financial commitments and guarantees.