October 24, 2020

Air Nostrum studies going to the Government rescue fund




The Valencian airline Air Nostrum It is studying to apply to the fund to support the solvency of strategic companies arbitrated by the Ministry of Finance and managed by SEPI, and continues to analyze the opportunities that may arise within the framework of community regulations that help ensure the viability of the company.

In the autonomous field, it has held meetings with the Generalitat to expose the situation in the sector caused by the pandemic of the coronavirus and, specifically, of the company, although at the moment they have not reached any agreement regarding possible aid, as sources from Air Nostrum have told EFE.

These contacts, which El Confidencial advances this Wednesday, are framed in the line of using all the mechanisms at their disposal within the new legal framework that emerged as a result of the pandemic to face the situation and try to guarantee survival in the scenario of World crisis.

The Department of Territorial Policy has also confirmed to EFE the contacts with Air Nostrum, as with other companies in the transport sector, to know the situation they are going through, and they have explained that nothing has yet been specified regarding any type of support.

Air Nostrum affirms that the collapse of passenger traffic generated by the pandemic is suffering heavily in the income statement, as is happening in the rest of airlines and other sectors of the tourism sector.

They recalled that they first worked with the banking sector to obtain financing within ICO loans, and now they are studying to apply to the fund to support the solvency of strategic companies arbitrated by the Ministry of Finance.

On March 28, Air Nostrum reported that it temporarily stopped flying due to national and international mobility restrictions and the closure of borders due to the coronavirus and applied an ERTE due to force majeure for its entire workforce (1,439 employees).

It closed a financing round of 130 million euros with the ICO endorsement in which 18 financial entities participate, destined to cover the cash needs for the rest of the year and to meet the financial commitments implied by the gradual return of the airline to operation, in accordance with the de-escalation phases contemplated by the authorities and market recovery forecasts.

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