The Hague (AFP)
After France, the Netherlands comes to the rescue of Air France-KLM by providing aid of 3.4 billion euros to the Dutch company to enable it "to face the crisis" linked to the coronavirus, according to a press release published on Friday by the group.
This aid, in the form of loans, comes on top of the 7 billion put on the table by France on May 7 to ensure the survival of the French company, brought to its knees like the whole sector by the pandemic.
As of the end of April, The Hague had promised to help KLM with an amount between 2 and 4 billion euros.
The aid of 3.4 billion euros is broken down into a loan of 2.4 billion granted by 11 banks, including three from the Netherlands, 90% guaranteed by the Dutch state and a direct loan from the latter to KLM for 1 billion euros.
The direct State loan is associated with "the company's commitments in terms of sustainable development as well as the restoration of KLM's performance and competitiveness, including a global restructuring plan and the contribution of its employees", adds the group without further details.
Air France, for its part, benefited from 4 billion euros in bank loans guaranteed 90% by the French State and a direct loan from the State of 3 billion, again in return for commitments to improve profitability and the reduction of its CO2 emissions.
In total, the Franco-Dutch carrier therefore benefited from 10.4 billion euros in aid from Paris and The Hague to enable it to overcome the crisis.
France and the Netherlands each own 14% of the Franco-Dutch group that the airline company Air France forms with KLM.
More than 95% of its traffic evaporated in the second quarter, mainly due to traffic restrictions and border closings decided all over the world to curb the spread of the virus. And the recovery promises to be slow.
"Thanks to the support of the Dutch and French states, I am sure that the Air France-KLM group will emerge stronger than ever from this crisis," said the director general of Air France-KLM, quoted in the press release.
"In the coming period we will work on the one hand to restore our network, and on the other hand to implement a restructuring plan and demanding conditions related to this financial support", for his part said KLM CEO Pieter Elbers.
© 2020 AFP