The government is preparing urgent financial aid for Iberia to prevent its financial crisis following the coronavirus, following the example of other European governments such as France and Germany, which have already released or are finalizing soft loans for Air France-KLM and Lufthansa, the newspaper El País reported on Tuesday.
The European Commission has given the go-ahead for public aid for airlines in trouble and, in fact, Air France or Lufthansa are waiting to receive funds from their respective governments. The Executive was waiting for the position of Brussels to decide its position regarding Iberia.
The aid would be in the form of soft loans with ICO guarantees and would not, at least for the time being, represent an entry into the capital of the airline.
According to the government’s calculations, any airline will be in deficit if aircraft occupancy is below 50 percent when operations resume. Iberia is already in contact with financial institutions to receive a loan of 1 billion.