The Globalia tourism group, to which Air Europa and Halcón Viajes belong, is considering different options to avail itself of the rescue fund approved by the Council of Ministers last week, which would allow it to strengthen its solvency after the impact of the health crisis. This fund, endowed with up to 10,000 million euros, would make it possible to channel aid to companies in the most affected sectors such as tourism and its adjacent ones.
The tourism firm, which also owns the Be Live hotel chain, is evaluating the urgent needs it has in order to find the most convenient formulas, according to sources consulted. Among them, there is an access to lines of financing with more facilities by the Official Credit Institute (ICO) or the granting of a participative loan, but the direct entry of state capital is ruled out, according to those sources, which ensure that there is no is in negotiations with the Government, as he announced The confidential.
The purchase of debt or any other instrument convertible into capital are some of the options that the rescue fund itself is given to act, whenever a viable company requests it, reports Efe. Only in the hypothetical case that the aid was not returned, the State would be allowed to enter its shareholding.
A delicate situation
Globalia, like other companies in the sector, is in a very delicate situation as a result of the slowdown in tourist activity during the pandemic months. The group’s president, Juan José Hidalgo, recently warned in his speech at the conferences organized by the CEOE employers that, without aid, the sector would “last a newscast.” The veteran businessman from Salamanca publicly requested the support of the Executive.
The coronavirus epidemic has particularly affected airlines and the tourism sector, prompting most companies to act. In the case of Globalia, Air Europa presented a temporary employment regulation file (ERTE) for 90% of its staff since March until the end of summer and signed a syndicated loan with the support of the State.
Likewise, the crisis has occurred at the worst moment imagined by the group’s managers, who last November had reached an agreement for the purchase by Iberia of 1,000 million euros. The pact is pending the analysis of the Brussels Competition authorities, although after the economic impact of the covid-19 the agreed amount will have to be revised downwards between the two parties. These have resumed negotiations, the development of which is pending the evolution of the business after the return of the aircraft to activity, without ruling out the possibility of rupture.
The aid that Air Europa could receive would go by a parallel route to that of said negotiation with Iberia, which has also recognized the need to increase financing with better ICO guarantees. This airline, integrated into the Spanish-British group IAG, has a cushion of around 2,000 million euros to endure, but the decrease in income affects the company day by day, which could lead to evaluating other types of aid.