The public financing contract signed by Air Europa and the State Company for Industrial Participations (SEPI) in November 2020 has been vital in helping the airline weather the challenges posed by the Covid-19 pandemic. The aid, amounting to 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 denied by members of the Executive, but a complaint has been filed against Begoña Gomez for alleged influence peddling, which is currently under investigation.
The aid provided to Air Europa required rigorous auditing and evaluation of its eligibility and survival plans. SEPI demanded extensive guarantees from the Hidalgo family, owners of Air Europa, to secure public funds. The conditions of the loans included fixed and variable interest rates with strict repayment terms. Furthermore, SEPI’s involvement in Air Europa’s management includes representation on its board and approval for key decisions regarding its operations. This significant influence extends to financial transactions, asset sales, and collaboration agreements.
Despite facing significant challenges due to Covid-19’s impact on the aviation industry, Air Europa managed to sustain its operations with support from SEPI and other sources of financing. Tough decisions were made while closely overseeing government intervention was necessary for survival. Therefore, both parties continue to play critical roles in shaping Spain’s aviation sector.
In conclusion, while concerns about political interference exist regarding this matter, it is clear that without government intervention through funding contracts like this one signed between SEPI and Air Europa’s owners would have had a challenging time staying afloat during these trying times for their industry.
The future of Air Europa remains uncertain as it continues to navigate through tough times due to Covid-19’s effects on travel demand worldwide. However, with continued partnership with SEPI as well as other sources of funding available now more than ever before they can hope for long term success.
As such it is important that both parties work together openly and transparently addressing any concerns about political interference so that they can continue building trust among stakeholders within their industry while providing essential services during these times of crisis for everyone involved.
