The management board of the Solvency Support Fund for Strategic Companies has approved the granting of aid of 111 million euros to the regional airline Air Nostrum, which will be formalized in its entirety through a participatory loan.
The operation has been approved by the managing council of the fund, managed by the State Industrial Participation Company (SEPI), “after an exhaustive and rigorous process of analyzing the economic and legal situation of the company, the impact it has suffered due to the Covid-19, the viability plan presented by Air Nostrum as well as the group’s evolution prospects and the guarantees provided to ensure the return of the temporary public financial support that it will receive,” SEPI said in a statement.
The company is made up of the parent holding company Air Investment Valencia and its subsidiaries Air Nostrum Líneas Aéreas Del Mediterráneo, Air Nostrum Engineering And Maintenance Operations, Air Nostrum Global Services, Ara Gestion De Tripulaciones y Vuelo and Air Nostrum Training Operations.
Air Nostrum is an airline specialized in passenger transport. It began operating in 1994 with the aim of launching the first private regional aviation project in Spain. The group has four other lines of business, management support and consulting services, aircraft maintenance, aeronautical training and comprehensive crew and scheduling management, reports Europa Press
SEPI points out that the company is the leader in regional air transport in Spain and one of the five largest companies in the Valencian Community. Its activity plays “a very relevant role as an economic engine, generating added value and employment”.
Air Nostrum is also relevant in other areas, as it is a feeder and distributor of traffic for the Iberia group in the Madrid ‘Hub’. In addition, it contributes to the development of national tourism and is considered “as a backbone airline for Spain in niche markets, ultra-peripheral communities and routes in Public Service Obligation”.
The airline’s turnover rose to 539 million euros at the end of 2019, which, together with its national workforce of 1,400 direct employees and 2,100 indirect employees, shows its impact on the Spanish workforce.
The Covid-19 crisis generated a 40% drop in company sales in 2020 compared to 2019 and 82.25 million euros in gross operating profit, with losses of 144 million euros and put the company in a situation of capital deficit.
This new operation of the Business Solvency Support Fund will be submitted to the Council of Ministers for authorization and will thus be added to the 21 already authorized for Air Europa, Ávoris Corporación Empresarial, Plus Ultra Líneas Aéreas, Duro Felguera, Tubos Reunidos, Rugui Steel , Hotusa, Grupo Airtificial, Grupo Serhs and Reinosa Forgings
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