MIAMI – Spanish carrier Air Europa (UX) is negotiating deferrals on the lease of its aircraft, as it navigates government-backed financial support.
As reported by aviation portal FlightGlobal on February 23, “one lessor says it is negotiating a second deferral agreement with the airline, having had a first one in operation until December 2020.”
One source on behalf of the lessor told the portal that the leasing company is “looking to get at least the debt serviced, and [Air Europa parent] Globalia is looking to pay less.”
Lessor Says It Received UX Payments until December 2020
Another lessor stated that it is also in talks with the airline, and affirmed it received payments until December. “Europa Press on 11 February reported Valentin Largo’s appointment as chief executive of Air Europa, saying it had been mutually agreed by SEPI – a state agency set up to support companies impacted by the pandemic – and Globalia,” the portal stated.
Largo has also worked with IAG-owned Iberia and Vueling. According to a source knowledgeable in the matter, the appointment of Largo was a condition for SEPI to release an additional €100m (US$120m) of funding to UX, as part of a €475m government-backed loan settled in November 2020.
Air Europa has a fleet of 42 aircraft, all of them leased, consisting of 18 Boeing 787s, 20 737NGs and four Airbus A330s.
The airline, per the portal, “leases four 737NGs from Aviation Capital Group, two from AerDrago Aviation Leasing, five from GOAL, two from AMCK Aviation, four from Goshawk, two from Itochu and one from Merx Aviation.”
Five of its Boeing 787s “are leased from SMBC Aviation Capital, one from Windward Aircraft Management, one from DAE Capital, four from BOC Aviation, three from Avolon, two from Jackson Square Aviation, and one each from AerCap and BBAM,” the portal said, adding that “Macquarie AirFinance, Aircastle, Carlyle Aviation Partners and Zephyrus Aviation Capital lease one A330 each to the Spanish carrier.”
The appointment of Largo comes in close to the IAG purchasing deal, whose price has been reduced to €500m this past January, down from €1bn set in November 2019.
Featured image: Air Europa EC-LQP Airbus A330-243. Photo: Alberto Cucini/Airways