Spain to Weigh Air Europa Stake in Revised Deal With IAG

  • Government seen taking up to 40% holding in struggling airline
  • Economy minister says all options are being explored

An Air Europa Boeing 737-800 makes its landing at the Lanzarote Airport in the Canary Islands on Dec. 22, 2021.

Photographer: Fabrizio Gandolfo/Sopa Images/LightRocket/Getty Images
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Spain is considering taking a direct stake in Air Europa as part of a revised plan to rescue the troubled airline after the collapse of its proposed sale to IAG SA, according to people familiar with the matter.

Under a new structure under discussion, state-backed coronavirus bailout loans could be converted into a government holding of about 40% in the carrier, according to the people, who asked not to be named while negotiations are in flux.