Spain Approves €320m State Aid Package For Travel Group Avoris
Spain has approved a €320 million state aid package for travel group Avoris, the Spanish government has said, making Avoris the fourth company to tap the country's multibillion-euro fund for businesse...
Spain has approved a €320 million state aid package for travel group Avoris, the Spanish government has said, making Avoris the fourth company to tap the country's multibillion-euro fund for businesses struggling to cope with the COVID-19 pandemic.
Avoris, which was formed last May through the merger of the Barcelo Group and Globalia's travel agency and tour operator businesses, generated €4.07 billion in sales in 2019 and employs some 6,400 workers.
The rescue package will come from a €10 billion government fund to support companies in strategic industries that are considered viable but are experiencing problems due to the coronavirus.
Government spokeswoman Maria Jesus Montero said that Avoris was a viable business before the pandemic.
"Avoris' strategic nature is undeniable, and as a major player in the tourism sector, we are clearly justified in helping it by providing these funds," she told reporters after a weekly cabinet meeting.
The package will comprise a €157 million loan and €163 million in hybrid debt convertible into equity.
Avoris must accept a government-appointed non-voting observer to its board and has six years to repay the loans.
Air Europa, Duro Felguera And Plus Ultra
Late last year, the government gave the green light for a €475 million package for struggling airline Air Europa, which Globalia is in process of selling to IAG, and earlier this month it approved €120 million for engineering firm Duro Felguera. Additionally, airline Plus Ultra got 53 million euros from the government fund.