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Spain Approves €320m State Aid Package For Travel Group Avoris

Published on Mar 22 2021 1:07 PM in General Industry tagged: Avoris

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 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.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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