Copyright Photo: Air Nostrum-Iberia Regional Bombardier CRJ1000 (CL-600-2E25) EC-MUG (msn 19061) (Levante UD – The Oldest Club in Valencia) PMI (Javier Rodriguez). Image: 954724.) PMI (Javier Rodriguez). Image: 954724.
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:
Air Nostrum and CityJet have announced that they have signed a Heads of Terms with the aim to bring about closer co-operation between the two airlines under the umbrella of a new holding company. Such a development will be subject to obtaining the requisite regulatory approvals and the preparation of the relevant filings has begun.
The coming together of these two regional airlines would see the creation of the largest pan-European regional airline group.
Air Nostrum, who employs 1,450 people, is especially well known as the Regional Operator for Iberia under a longstanding franchise agreement flying to more than 60 destinations within Europe and Africa, with a fleet of 50 aircraft, including 30 Bombardier CRJ1000 regional jets. Air Nostrum is also active on wet lease services for customers across Europe, including Lufthansa, SAS, Binter or Croatian Airlines.
CityJet employs 1,250 people across 9 European countries and operates an extensive regional network of services under wet lease contracts with Air France, Brussels Airlines and SAS with a fleet of over 40 aircraft based in nine locations across Europe. This fleet includes 22 new Bombardier CRJ900 regional jets acquired specifically for wet lease services.
The two airlines are coincidentally of very similar age, having been founded in 1993 (CityJet) and 1994 (Air Nostrum), both now being close to their 25th year of operation.
It is this combined span of experience that gives Air Nostrum and CityJet the enthusiasm and energy to move forward to consolidate their respective reservoirs of specialist knowledge and skilled resources into a single group pool of considerable depth.
Carlos Bertomeu, President of Air Nostrum said that ’’Europe is experiencing substantial expansion of wet lease contracts, otherwise known in North America as Capacity Purchase Agreements, as established airlines pursue a strategy of outsourcing their regional flying programmes. By CityJet and Air Nostrum finding a formula for combining their respective resources in terms of aircraft, crew and support services, this will undoubtedly result in a far more comprehensive and cost effective option for leading airlines in Europe to outsource their regional networks with confidence in the strength of this proposed new entity as an ideal partner for such activity’’.
Pat Byrne, CEO of CityJet said ‘’ There are so many things we have in common with Air Nostrum, especially the fact that we both operate large fleets of Bombardier CRJ 900 and CRJ 1000 aircraft which we believe is a robust and economic platform and ideal for wet lease contracts. Our combined fleets would represent a total fleet strength close to 100 aircraft. By coming together, we believe we will be in a position to respond to the specific needs of customer airlines through our flexibility in the provision of safe, dependable and quality assured operations. Our respective proven capacity and asset management expertise in acquiring aircraft for new wet lease contracts is also a significant added benefit we can provide to our airline customers.’’
The consolidated annual gross revenue of Air Nostrum and CityJet would be circa €700m, derived from a balanced and well spread portfolio of wet lease and franchise contracts throughout Europe. This makes for a very solid financial base in which prospective contracting airlines can have confidence in terms of the proposed new regional airline group’s capacity to deliver exceptional service on optimal economic terms.
Top Copyright Photo: Air Nostrum-Iberia Regional Bombardier CRJ1000 (CL-600-2E25) EC-LOJ (msn 19018) PMI (Javier Rodriguez). Image: 936716.
Air Nostrum aircraft slide show:
CityJet aircraft slide show:
Bottom Copyright Photo: CityJet (Ireland) Sukhoi Superjet 100 EI-FWA (msn 95102) ZRH (Andi Hiltl). Image: 937322.
Air Nostrum has painted one of its Bombardier CRJ1000 (EC-MNQ) in a Cies Islands promotional special livery.
The Cíes Islands are an archipelago off the coast of Pontevedra, in the region of Galicia (Western Spain) in the mouth of the Ria de Vigo.
They belong to the municipality of Vigo. They were declared a Natural Reserve in 1980 and are included in the Atlantic Islands of Galicia National Park.
Javier Rodriguez reporting from Spain.
Copyright Photo: Air Nostrum-Iberia Regional Bombardier CRJ1000 (CL-600-2E25) EC-MNQ (msn 19051) (Islas Cies) PMI (Javier Rodriguez). Image: 939314.