Hours after learning that Iberia had withdrawn its offer for Air Europa, Globalia chairman Pepe Hidalgo said that “it was a happy day” because the sale agreement he had signed had not been fulfilled, and for which his group had pocketed more than 100 million euros in two compensation payments.
Hidalgo, just after Iberia’s refusal to buy Air Europa was confirmed, Preferential He had announced in a scoop seven hours earlier, he told Toro TV that the pandemic had cost him the loss of a Hotel in Tenerife and another in Mallorca, and especially Halcón Viajes and Travelplan.
The owner of Air Europa, who was the driver of Captain General Álvarez Arenas – later Minister of the Army under the Caudillo – surprises by mentioning Francisco Franco, who died on November 20, 1975, and who he says never helped him.
“They haven’t given Juan José Hidalgo or Air Europa a single cent. Neither Franco, nor Suárez, nor Aznar, nor Rajoy, nor Zapatero, nor any government. It’s a lie that they have given me a bailout. It was a financial agreement with a bank,” he exclaims.
The certainty that Air Europa will continue on its own path reopens the option for Globalia to promote the creation of a tour operator to support its airline, as Juan José Hidalgo already intended almost a year and a half ago.
The president of the tourism group then encouraged a series of Spanish issuing giants to join his proposal with the explicit addition of “annoying” Simón Pedro Barceló, after traumatically expelling him from the Ávoris shareholding (Hidalgo: less urgency to sell Air Europa as it loses status without issuers).
Air Europa has one of the keys to survival in its 25 Boeing 787 Dreamliners. However, the value of this Globalia model has two sides, given the current situation of demand and reliability, as explained REPORTUR.us.
On the positive side, there was until recently a strong demand for long-haul aircraft, although on the downside, recurring engine problems make them less attractive (Air Europa and the two reversals of its fleet of 25 Boeing 787s).
Air Europa boasts that it can continue on its own, especially with the current extraordinary prosperity and with the guarantee of credibility provided by Jesús Nuño de la Rosa and Richard Clark, but it also admits that it is not “untouched by the instability of certain markets or by delays in the delivery of new aircraft.”
Now, after two attempts, any possibility of Spain becoming equal to the powers with a large hub between Latin America and Asia is buried, as well as with its second airline protected by having the State as the main bearer of its liabilities, whether in debt or capital.
Hardly any politician would dare to let Air Europa fail, even with the option of it becoming a ‘zombie’, but protected and outside of market logic, with public money involved and without any government willing to assume thousands of layoffs.
The eternal war to which Brussels has condemned Barajas between Iberia and Air Europa is based on the fact that Globalia, thanks to having the State as a creditor and possibly as a shareholder, will hardly ever suffer a fatal outcome if its accounts turn around, already with a financial balance at the limit.
Air Europa’s future is determined by its potential to generate profits that can cover its debts, and by the list of realistic buyers that could help it sustain its financial balance (Iberia-Air Europa: the concessions are insufficient for Brussels).
Air Europa’s EBITDA in an average year, between 100 and 200 million euros, is compromised by financial interests of around 7 percent of the debt of almost 1,000 million euros, which amounts to around 70 million euros per year.
In addition, Globalia’s airline must gradually face the repayment of debts both with banks and, above all, with the State after the SEPI rescued it with a public loan once the entities closed the credit tap.
This scenario makes it difficult for the only two possible candidates, along with IAG, to buy the airline, such as Air France-KLM and Lufthansa, to consider that an acquisition would be worthwhile for them and to convince their shareholders that it could make as much strategic sense as the more obvious one for Iberia.
Iberia’s resignation, as anticipated Preferential Last Thursday, seven hours before the news of the year was officially confirmed, it left Juan José Hidalgo and his children Javier, María José and Cristina with mixed feelings.
The patriarch did not stop saying that Brussels would never approve this operation because the owner of IAG was British, and also had a majority Qatari shareholder, but above all his proclamations against the purchase were a reflection of his preference (Iberia tells Air Europa creditors it is giving up on buying it).
Hidalgo Sr. wanted to maintain the status of public recognition that only one of the two largest Spanish airlines allows him, well above amassing several hundred million, contrary to the feelings of his offspring.
The president of Globalia has also received a good sum of around 50 million in compensation, bringing the total to around 100 million in this respect.
