Air Nostrum is hurting due to COVID-19 travel restrictions. The company is seeking a loan to cover salaries and other expenses in order to continue operating.
The company issued this statement:
Air Nostrum has been forced to turn to the fund managed by the SEPI due to the length of the coronavirus crisis and its restrictions on passenger traffic, and given the forecast of a slower recovery than originally expected, in order to ensure its work integrating all territories and driving tourism.
The company has submitted its request for access to the Solvency Support Fund for Strategic Companies (Fasee) to secure the resources needed to overcome the declining revenue after the sharp drop in passenger traffic caused by the pandemic, and to ensure connectivity and protect employment.
The company has estimated the amount it requires in the form of loans at €103 million, which the company plans to repay in 7 years.
In 2019, Air Nostrum marked its sixth consecutive year with profit, following the financial crisis from 2009 to 2013.
Last year, as a result of the pandemic, the company recorded losses of €129 million, pending approval at the next annual shareholder general meeting.
Throughout its almost 27 years of existence, its operational quality has been matched with financial profitability, thus reaching solvency and credit quality ratios that have enabled the signing of large fleet contracts and the construction of its own maintenance hangar.
At the end of the 2019 financial year, the company enjoyed a healthy equity and treasury position.
Air Nostrum Route Map:
Top Copyright Photo: Air Nostrum-Iberia Regional Bombardier CRJ1000 (CL-600-2E25) EC-MXA (msn 19064) (Valencia CF – 1919-2019) PMI (Javier Rodriguez). Image: 951271.
Air Nostrum aircraft slide show: