The survival of Air France-KLM is not "automatic", according to the Dutch Minister of Finance

The survival of the Air France-KLM airline alliance, undermined by the Covid-19 pandemic, is not certain if the current economic crisis continues, Dutch Finance Minister Wopke Hoekstra said on Sunday.

"It is not automatic," Hoekstra explained in an interview with Dutch public television NPO, recalling the importance of cutting costs.

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The aid granted to KLM by the Netherlands must be accompanied by a "global restructuring plan"

France and the Netherlands each own 14% of the Franco-Dutch group that the airline company Air France forms with KLM.

Paris granted in the spring seven billion euros in aid to Air France in the form of loans, the Netherlands having done the same for KLM to the tune of 3.4 billion euros.

The aid granted to KLM by the Netherlands must in particular be accompanied by a "global restructuring plan" as well as commitments concerning the "restoration of performance and competitiveness" of the company.

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A restructuring plan expected for October 1

Minister Wopke Hoekstra said on Sunday that he had insisted in discussions with the company on the importance of "changing course".

According to the Dutch news agency ANP, KLM is due to draw up a restructuring plan on October 1.

The Air France-KLM group suffered a loss of 2.6 billion euros in the second quarter, affected by the collapse in air traffic caused by the epidemic due to the coronavirus, after a loss of 1.8 billion out of the three first months of the year.

Air France has announced that it will cut 7,580 jobs by the end of 2022 and KLM up to 5,000.