Globalia, the airlines group that owns Air Europa, has requested €400 million euros from the Spanish government rescue fund for strategic companies to recapitalise itself to deal with the impact of COVID 19.
The request is currently being analysed by the government department, Sociedad Estatal de Participaciones Industriales (SEPI). If successful, the cash injection could help unblock Iberia's purchase of Air Europa.
Iberia's purchase of Air Europa was announced last November, and was was pending approval by Spanish competition watchdogs, but progress stalled due to COVID 19.
Previously IAG’s incoming chief executive, Luis Gallego said that he expected the operation to be signed before the end of the year, but only if an agreement on the price could be reached, since "the value of the company is not the same now" as before the health crisis.
Spain’s rescue fund is intended to support solvent companies that are considered strategic for the national economy, but that have been affected by the pandemic. Contributions may be granted until June 30, 2021 and those more than €250 million must be notified to the European Commission.