Air Europa has been saved from bankruptcy by a public financing contract signed in November 2020 with the State Company for Industrial Participations (SEPI). The aid, worth 475 million euros, was the largest granted by the Fund to Support the Solvency of Strategic Companies (FASEE) aimed at assisting companies affected by the pandemic. To receive the aid, Air Europa had to meet strict conditions and offer SEPI representation on its board.
The controversy surrounding President Pedro Sánchez’s partner Begoña Gómez and her alleged influence on Air Europa’s favorable treatment has been dismissed by members of the Executive. A complaint by Manos Cleans against Gómez for alleged influence peddling led to legal proceedings, but the Prosecutor’s Office requested its dismissal.
Prior to receiving 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 these reports. SEPI’s involvement in key decisions such as asset sales or changes in corporate structure was required under the agreement.
Air Europa had previously secured bank financing through ICO before seeking assistance from SEPI. However, due to legal disputes related to Covid-19’s impact on its hotel and transportation activities, it faced financial difficulties. The SEPI aid agreement included fixed and variable interest rates, with SEPI playing a crucial role in approving significant financial and strategic decisions for Air Europa.
Despite facing controversy over allegations linking his partner to favorable treatment towards Air Europa, Pedro Sánchez has maintained that his government is committed to supporting strategic companies during tough times like these.
