An airline specializing in regional traffic
State Industry Participation Inc. (Sepi) announced that the board has approved a 111 million euro loan to Valencia-based Air Nostrum. The financing will be provided through a fully participatory loan, following a decision by the Solvency Support Fund for Strategic Enterprises after an extensive and rigorous assessment of the company’s economic and legal situation, an analysis that extended over more than a year. The evaluation considered the impact of the Covid-19 crisis, the viability plan devised by Air Nostrum through its parent holding, Air Investment Valencia SL, and its subsidiaries Air Nostrum Líneas Aéreas Del Mediterráneo SAU, Air Nostrum Engineering And Maintenance Operations SLU, Air Nostrum Global Services SLU, Ara Gestion De Tripulaciones y Vuelo SLU, and Air Nostrum Training Operations SLU. The plan also outlines the group’s development prospects and the guarantees intended to secure the return of the temporary public financial support. (Source attribution: Sepi board announcement and related fund documentation.)
An airline specializing in regional traffic
Air Nostrum operates as a passenger transport airline with a focus on regional routes. It was established in 1994 to execute its initial project in the special aviation region of Spain. The group has diversified into four additional lines of business: management support and consulting services, aircraft maintenance, aviation training, and comprehensive crew management and planning.
As the leading regional carrier in Spain, Air Nostrum ranks among the top five companies in its autonomous community of Valencia. The airline contributes significantly to the regional economy by generating value and employment. It also functions as a feeder and traffic distributor for the Iberia Group at the Madrid hub, helping to develop national tourism and serving as a backbone airline for Spain on routes in niche markets, ultra-peripheral communities, and Public Service Obligation corridors.
Air Nostrum reported a turnover of 539 million euros at the end of 2019, supporting a workforce that included approximately 1,400 direct employees and around 2,100 indirect roles, underscoring the airline’s influence on Spain’s labor market. The health crisis led to a 40% drop in sales in 2020 versus 2019, with sales decreasing by 82.25 million euros and EBITDA turning negative, resulting in an equity deficit for the company. (Source attribution: Air Nostrum annual report 2019; sector analyses on regional aviation impacted by Covid-19.)
The operational Solvency Support Fund move positions Air Nostrum alongside twenty-one other companies already authorized, including Air Europa, Ávoris Corporación Empresarial, Plus Ultra Líneas Aéreas, Duro Felguera, Tubos Reunidos, Rugui Steel, Hotusa, Grupo Airtificial, and several others such as Grupo Serhs, Reinosa Forgings & Castings, Grupo Losán, Soho Boutique Hotels, Abades Group, Técnicas Reunidas, Wamos Group, Eurodivisas SA, Ferroatlántica SAU Group, Hesperia Investor Group, Abba Group, Julià Group, and Mediterránea Group. (Source attribution: Solvency Support Fund announcements and sector briefings.)