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Leading regional airline saved: Solvency fund agreed for key employer hit by pandemic losses
Wednesday, May 25, 2022 @ 6:56 PM

ONE of the Comunidad Valenciana's biggest employers and a key national transport system has been prevented from closure after the pandemic left it with unprecedented losses.

Air Nostrum, a regional airline based at Valencia airport but with links to almost every terminal in Spain, is universally acknowledged to have been a huge contributor to 'staycation' tourism, as well as long-distance commuter routes.

These small aircraft and their internal flights also means holidaymakers heading for long-haul destinations do not have to make the trek to Spain's biggest airports in Madrid and Barcelona, but can book directly from their nearest terminal to home – either as a connecting flight or as separate transport.

Air Nostrum's management says the latter rôle, as 'feeder and distributor' for Spain's main national airline Iberia at its hub in Madrid, is one of the pressing reasons for the company to be saved.

And given that it employs around 1,400 people – not counting the 2,100-plus jobs in other companies that rely on Air Nostrum's presence – the carrier's financial and social influence in the Comunidad Valenciana makes it highly valuable as an enterprise.

Additionally, its loss would mean the end of a public service, reducing major transport links – this gap would be very difficult to fill since, even though other airlines run national flights, these are a subsidiary part of their main operations rather than, as is the case with Air Nostrum, its entire raison d'être.

Until Covid-19 struck, Air Nostrum was performing consistently well – other than a few shaky years during the recession sparked by the housing market crash, the carrier has been comfortably in profit since the economy and property industry began to recover around a decade ago.

Founded in 1994, Air Nostrum fast became a leader in national passenger travel, and is one of the Comunidad Valenciana's five biggest companies in terms of economic and social impact, turnover, significance and size.

Turnover as at the end of 2019 came to €539 million, but with lockdowns and movement restrictions nationally from very early in 2020, Air Nostrum's sales took a huge hit, plummeting by 40%.

For the first time in recent memory, the company ended the year with a capital loss running into nine figures – enough that its continuing operations have become extremely precarious.

Read more at thinkSPAIN.com

 



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