The financial situation of the Spanish airline Air Europa is extremely tense due to the corona crisis. Now the government seems to be helping the carrier with a EUR 400 million loan. However, Spain also wants to share in the company's success.

According to the local newspaper Cinco Dias, Air Europa is particularly troubled by the ongoing leasing costs for the fleet. These are estimated at around 30 million euros per month. At the same time, only a few destinations can currently be served and the demand is also very tight. Only a few destinations are served on long-haul routes, and mostly only once a week.

The Spanish government is said to have signaled its willingness to grant a fixed-rate loan in the amount of 201 million euros. It is planned that, depending on the success of Air Europa, the state will also benefit. Another 199 million euros should flow through a normal, but state-secured loan. The state holding company “Sociedad Estatal de Participaciones Industriales Sepi” is currently carrying out a due diligence. The result should be known shortly and is decisive for the granting of the emergency loan.

The International Airlines Group actually wanted to take over the airline Air Europa for just under a billion euros and merge it with Iberia. However, the corona crisis meant that the value of the Spanish carrier has fallen massively and the IAG is no longer willing to pay the high price to Globalia. Most recently it was rumored that a maximum of 500 million euros from the IAG are on the table as an offer. The previous owner obviously doesn't like that at all, but according to local media reports there should be pressure from the state to secure the connections under the IAG umbrella. It remains to be seen whether the takeover will actually take place.