Spanish Government prepares financial aid for home carrier Iberia

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The Spanish Government is preparing urgent financial aid for Iberia to prevent the airline’s collapse due to the stoppage of flights. Following the example of other European countries such as France and The Netherlands, who already released “soft loans” for Air France and KLM.

Until now, Spain waited for the European Commission to finish outlining the new legal framework for public aid to strategic companies, but other countries have already gone ahead to offer these state aids to their local carriers due to urgent need for liquidity.

Like every airline, Iberia is experiencing financial liquidity problems that are worsening as aviation has come to a complete standstill. In parallel, the subsidiary of International Airlines Group (IAG) is negotiating with banks for a credit line of around 1 billion to pay the most urgent bills. Iberia declined to comment on this matter.

Source: El Gobierno prepara ayudas urgentes para Iberia (El Pais)

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