The Globalia headquarters in Llucmajor. | Miquel À. Cañellas


According to the online newspaper El Confidencial, the SEPI state holding company will be wanting the Globalia headquarters in Llucmajor as security for the 475 million euro loan to be made to Air Europa.

The offices occupy some 30,000 square metres, and Globalia, whose other businesses include Be Live Hotels and the Halcón Viajes chain of travel agencies, spent around ten million euros on redevelopment in 2010.

The state loan will have to be repaid by 2026, i.e. five years after it is officially made. It is understood that the Hidalgo family, who own Globalia, is also offering hotels in the Dominican Republic as a guarantee.

Questions have been asked about the repayment, given that Air Europa profits, prior to the coronavirus crisis, came nowhere near being sufficient. The projected sale of Air Europa to Iberia (IAG) is a factor in the loan agreement, not just because of the repayment but also because Iberia doesn't want two government-appointed directors sitting on the Air Europa board. Iberia wants to have a free hand to restructure Air Europa, and this would almost certainly mean redundancies.