Government Messages Reveal Coordination in Air Europa Rescue Efforts
WhatsApp exchanges among key ministers highlight the urgency and strategic planning behind Spain's support for the troubled airline.
WhatsApp messages exchanged between Spanish ministers José Luis Ábalos and Nadia Calviño during 2020 and 2021 indicate a different tone compared to those with María Jesús Montero.
While the Minister of Finance often addressed matters straightforwardly, the dialogue between Ábalos and Calviño remained cordial yet focused on critical issues including housing measures, eviction reforms, and the rescue of Air Europa.
Documents reveal that the then-First Vice President, whose name has not been disclosed, expressed concerns regarding Air Europa's financial situation.
Notably, she was displeased that in late February 2020, prior to the pandemic, the airline's owners—Juan José Hidalgo, Javier Hidalgo, and other family members—distributed substantial dividends exceeding 35 million euros.
This payout happened just before the government initiated a rescue of the airline, raising suspicions about the timing.
Her concerns led to the imposition of a ban on dividend distributions for companies that received government assistance, detailed in a ministerial council agreement from July 21, 2020, which established the Strategic Companies Solvency Support Fund amounting to 10 billion euros.
The establishment of this fund was crucial for providing support to significant companies at risk of bankruptcy due to the pandemic and for reassuring creditors.
For Air Europa, this assistance was vital, evident from the WhatsApp messages, to navigate the initial phase of its rescue.
During this period, on July 14, 2020, government officials frequently discussed strategies to expedite the airline's rescue, considering its critical financial state amid the economic downturn caused by COVID-19. On July 16, Calviño prompted swift action for aid, indicating that María Jesús Montero was aware of the necessity to expedite the process due to Air Europa’s precarious situation.
Ábalos communicated urgent messages, expressing that Javier Hidalgo, the CEO of Globalia—Air Europa's parent company—was in a dire financial condition and could not delay seeking governmental intervention any longer.
The company required prompt support to reassure its creditors about imminent aid, highlighting the urgency of securing assistance with proper documentation.
WhatsApp exchanges between Calviño and Ábalos illustrated a high degree of coordination and focus among government leaders, particularly concerning Air Europa’s rescue.
After overcoming initial hesitations, both the Minister of Finance and the Minister of Transport actively engaged in this critical phase of support.
In the subsequent phase of the operation, Prime Minister Pedro Sánchez became directly involved.
Reports indicate that shortly after Javier Hidalgo reached out to other officials to bolster the airline's rescue, Sánchez intervened on September 8, 2020, to directly oversee the operation.
Sánchez expressed concerns over the potential acquisition of Air Europa by International Airlines Group (IAG) and sought to devise a different approach for the state's intervention.
He forwarded suggestions from a business associate regarding how to handle the airline's financial failing, insisting the need for a Spanish solution to ensure national air transport infrastructure remained intact.
Throughout these discussions, Sánchez maintained that while Air Europa required rescue, he opposed allowing the company to end up under IAG's control, aiming instead to keep it under national management.
His correspondence indicated that any agreement regarding IAG was not satisfactory, underscoring the complexities involved in the rescue planning.
While the Minister of Finance often addressed matters straightforwardly, the dialogue between Ábalos and Calviño remained cordial yet focused on critical issues including housing measures, eviction reforms, and the rescue of Air Europa.
Documents reveal that the then-First Vice President, whose name has not been disclosed, expressed concerns regarding Air Europa's financial situation.
Notably, she was displeased that in late February 2020, prior to the pandemic, the airline's owners—Juan José Hidalgo, Javier Hidalgo, and other family members—distributed substantial dividends exceeding 35 million euros.
This payout happened just before the government initiated a rescue of the airline, raising suspicions about the timing.
Her concerns led to the imposition of a ban on dividend distributions for companies that received government assistance, detailed in a ministerial council agreement from July 21, 2020, which established the Strategic Companies Solvency Support Fund amounting to 10 billion euros.
The establishment of this fund was crucial for providing support to significant companies at risk of bankruptcy due to the pandemic and for reassuring creditors.
For Air Europa, this assistance was vital, evident from the WhatsApp messages, to navigate the initial phase of its rescue.
During this period, on July 14, 2020, government officials frequently discussed strategies to expedite the airline's rescue, considering its critical financial state amid the economic downturn caused by COVID-19. On July 16, Calviño prompted swift action for aid, indicating that María Jesús Montero was aware of the necessity to expedite the process due to Air Europa’s precarious situation.
Ábalos communicated urgent messages, expressing that Javier Hidalgo, the CEO of Globalia—Air Europa's parent company—was in a dire financial condition and could not delay seeking governmental intervention any longer.
The company required prompt support to reassure its creditors about imminent aid, highlighting the urgency of securing assistance with proper documentation.
WhatsApp exchanges between Calviño and Ábalos illustrated a high degree of coordination and focus among government leaders, particularly concerning Air Europa’s rescue.
After overcoming initial hesitations, both the Minister of Finance and the Minister of Transport actively engaged in this critical phase of support.
In the subsequent phase of the operation, Prime Minister Pedro Sánchez became directly involved.
Reports indicate that shortly after Javier Hidalgo reached out to other officials to bolster the airline's rescue, Sánchez intervened on September 8, 2020, to directly oversee the operation.
Sánchez expressed concerns over the potential acquisition of Air Europa by International Airlines Group (IAG) and sought to devise a different approach for the state's intervention.
He forwarded suggestions from a business associate regarding how to handle the airline's financial failing, insisting the need for a Spanish solution to ensure national air transport infrastructure remained intact.
Throughout these discussions, Sánchez maintained that while Air Europa required rescue, he opposed allowing the company to end up under IAG's control, aiming instead to keep it under national management.
His correspondence indicated that any agreement regarding IAG was not satisfactory, underscoring the complexities involved in the rescue planning.
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Translated by AI
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