Iberia’s withdrawal of the memorandum of understanding in which the airline anticipated the conditions that could be imposed by the European Commission to approve the operation, makes it practically impossible to get the go-ahead from Brussels. As José Hervás explains today in Capital Madrid: “In the last two weeks there has been a 180-degree turn in the negotiations between the airline Iberia, the IAG group and the European Commission regarding…
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.
Air Europa and Ryanair have formed an alliance under the terms of which the former will supply the latter’s long haul flights. Following the agreement, Ryanair’s website will sell the flights the Spanish airline offers from Madrid to 20 destinations in 16 countries in America. This is a market where Iberia is the traditional leader.