MADRID, Jan 21 (Reuters) - Spanish airline Air Europa

has hired adviser PJT Partners ( PJT ) to raise cash through

debt, and possibly a capital increase, to pay back debt owed to

the government, a spokesperson for the airline said on Tuesday.

The airline, which is 20%-owned by British Airways owner IAG

Group, is seeking funds to pay an outstanding package

of loans worth a total 475 million euros ($491.77 million)

granted by the government during the pandemic, the spokesperson

said, confirming an earlier report by Spanish news website El

Confidencial.

The spokesperson said no decision had been made on

whether the operation would include debt, equity or both, nor

their respective amounts.

PJT Partners ( PJT ) did not immediately respond to requests seeking

comment.

($1 = 0.9659 euros)