In November 2020, Air Europa signed a crucial public financing contract with the State Company for Industrial Participations (SEPI) to help the airline survive the challenges posed by the Covid-19 pandemic. The aid, amounting to 475 million euros, was the largest granted by the Fund to Support the Solvency of Strategic Companies (FASEE). However, allegations have been made that President Pedro Sanchez’s partner, Begoña Gomez, had favorable treatment towards Air Europa in securing public support. These allegations have been refuted by members of the Executive and are currently under investigation.
The aid to Air Europa required thorough auditing and evaluation of its eligibility and viability plans. The 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. The SEPI’s involvement in Air Europa’s management includes representation on its board and approval for key decisions relating to its operations. The SEPI has significant influence on important matters such as financial transactions, sales of assets, and collaboration agreements.
Despite facing significant challenges due to Covid-19, Air Europa has managed to sustain its operations with the support of SEPI and other financing sources. The company’s financial struggles have necessitated tough decisions and close oversight from the government to ensure its survival. The future of Air Europa and its partnership with SEPI remain crucial for Spain’s aviation industry.
In conclusion, despite ongoing investigations into allegations linking President Pedro Sanchez’s partner Begoña Gomez to favorable treatment towards Air Europa in securing public support; it is clear that this financial assistance was crucial in helping Air Europa weather the challenges posed by Covid-19 pandemic. With significant investments coming from various funding sources including private equity firms; it is evident that this airline will continue operating even after this crisis has passed while continuing their partnership with SEPI which plays a critical role in managing their operations.
Furthermore, this contract highlights how governments worldwide are working tirelessly to support strategic companies during these unprecedented times while maintaining transparency and accountability mechanisms in place. As such, it is hoped that other countries follow suit in providing similar support measures for businesses that are most affected by this pandemic while ensuring ethical practices are maintained throughout any decision-making processes involved in granting such aid.