Article from BTNews 4 MAY 2020
Iberia gets loan
No word of job cuts for Iberia, Vueling or Level airline.
International Airlines Group (IAG) announced on Friday it had secured over €1bn (£880m) in Spanish bank loans for its Iberia and Vueling carriers, a day after announcing 12,000 job cuts at British Airways (BA).
The loans, which will be guaranteed by the Spanish state bank, will see Iberia receive $750m and Vueling $260m to get them through the coronavirus crisis.
The financing arrangements contain a number of non-financial covenants to protect the position of the banks, including restrictions on the transfer of cash to the rest of the IAG companies.
IAG chief executive Willie Walsh is well-known to oppose state aid, and has repeatedly said it will not pursue such schemes through the crisis. In March Walsh confirmed that the group had not followed other airlines in seeking financial help from governments.
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