The Spanish airline and its UK parent company IAG have approved the acquisition of Air Europa for €500 M. With the provison that SEPI facilitates the final agreement. This figure is half of what was agreed a year ago when the operation began to be forged due to the impact of the pandemic. The payment will not be made until 2026.
Air Europa rescue
Renta 4 | After the government approved the rescue of Air Europa last week, with an injection of 475 million euros, several media outlets are claiming the executive intends to establish a series of conditions for the operation. In our opinion, these would complicate the acquisition of the airline by IAG. The conditions would include the appointment of two directors, authorisation to approve strategic operations, dismiss and even agree the appointment of the CEO. IAG will be awaiting an official communication.
The airline had requested help a few months ago and today the Spanish cabinet has authorised its rescue, the first one involving a private company in Spain during the coronavirus crisis. The State will inject 475 million euros to avoid Air Europa’s bankruptcy via a specific fund created to save companies with solvency problems, particularly affected by Covid-19. This aid will mean a support of 240 million euros via a participative loan and another 235 million through an ordinary credit.