The Minister of Transport, Mobility and Urban Agenda, José Luis Ábaloshas defended these grants, which the Ministry of the Economy has announced prepares, so that airlines can cope with their liquidity problems and complement financing they have received through the ICO guarantees.
The measures are being designed after the government has spoken with the airlines, evaluated their needs and found that the ICO lines have not been sufficient, according to Ábalos.
However, he stressed that these companies have to “Comply with the law” refering to refund of travel amounts and has indicated that there are “thousands and thousands of claims to process” in this regard.
Iberia and Vueling, integrated into the British Hispanic group IAG, signed in early May two syndicated financing contracts endorsed by the ICO with 750 and 260 million euros respectively, as it advanced HOSTELTUR tourism news Iberia and Vueling ask for more than € 1,000 million to save their liquidity.
And meanwhile in Europe …
The announcement of the Spanish Minister of Transport occurs on the same day that the European Comission has given the green light to 6 billion from the second tranche of the German plan to recapitalize Lufthansa and avoid bankruptcy as a consequence of this crisis. This amount is added to the 3,000 million that Berlin granted as a state guarantee in March. (Lufthansa accepts the EC conditions and is now 20% state owned).
Brussels has understood that aid “is necessary, appropriate and proportionate to alleviate a serious disturbance in the economy of a Member State” and it is in line with the temporary, looser competition rules that the Community Executive has adopted to deal with the crisis.
The aid for recapitalization will avoid the insolvency of DLH (Deutsche Lufthansa AG, the parent company of Lufthansa), which would have “serious consequences on employment, connectivity and volume of foreign trade in Germany ”, points out the Commission.
At the time, Lufthansa is considering filing for bankruptcy or getting rid of its Belgian subsidiary Brussels Airlines because of the difficult economic situation after the pandemic. For weeks negotiates aid with the Belgian government, especially in loans, worth around 300 million euros.
Australian airline Qantas has also announced a adjustment plan which will cut 6,000 jobs and reduce costs by more than 9,000 million euros, after the aviation sector has received more than 700 million euros in public aid.
At the beginning of June, the French government presented a plan of 15,000 million euros to help the aeronautical sector, aimed above all at saving Air France, to which 7,000 million euros will be earmarked: 3,000 million contributed by the State as a shareholder of the airline and 4,000 more in the form of a state guarantee for a loan.
The Minister of Economy, Bruno Le Maire, assured that the plan tried to prevent 100,000 jobs from disappearing in six months, a third of those generated by the aeronautical business in France between direct and indirect.
He too Italian government will inject funds into the new Alitaliawhat will be nationalized after spending three years in bankruptcy administration for his financial problems. They will be at least 3,000 million euros.
More information in Airlines receive millionaire aid while waiting to resume flights.