Spanish Airlines May Need Additional Help, Government Says

(Bloomberg) --

Spain’s transport ministry is seeking to help airlines tap bank state-baked loans but more help may be needed, Minister Jose Luis Abalos said.

“I do believe airlines will tap those loans, but it is possible that they may need a reinforcement to those credit-lines, which now are enough to help liquidity only in the short-term,” Abalos said at a press conference Monday. “They will almost certainly need more help in the future, for treasury, and to recover their activity.”

Spain has also formed a working group with Germany, France and Italy within the European Commission and may have some options on May 13, Abalos said.

IAG SA’s Spanish units Iberia and Vueling announced May 1 that they were tapping a combined 1 billion euros in state-backed loans.

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