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Junta loses money with Andalus Airlines flop
31 October 2010 @ 19:07

ANDALUS AIRLINES is still costing the Junta de Andalucia thousands of euros although it is no longer operating. The airline was backed by the former Junta de Andalucia Councillor for Innovation, Science and Business, Almeria man Martin Soler, who planned for the company to operate flights to Sevilla.

It was partly financed by the Junta de Andalucia’s public fund for companies which represent a risk but which aim to promote economic development in Andalucia. The fund provided €40,000 and then two loans of €410,000 and €700,000, the latter in July this year when one of the company’s planes is embargoed and kept in a hangar at Almeria Airport.

It then comes to light that the company is insolvent and the PSOE socialist party puts up a fight to save it, managing to secure another loan for €937,000 with Caja Granada with the guarantee of €750,000 from the Andalucia Innovation and Development Fund. If the company did declare bankruptcy, then the Junta would have to pay that money.

Not only has the Junta placed more than €2.3m in the company but also promoted the Andalucian Tourism Board on the planes with a campaign costing €116,000.

Source: Euro Weekly News



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