Aircraft of the company KLM.

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ROBIN UTRECHT

It's give and take.

The Dutch government on Tuesday approved a bailout for the KLM airline after the pilots agreed to a five-year pay cut.

In the end, the executive will grant aid of 3.4 billion euros.

Arm wrestling

Wopke Hoekstra therefore won his showdown.

The Minister of Finance had indeed first frozen on Saturday the release of this aid in the form of loans intended for the Dutch branch of Air France-KLM, in the face of the refusal of the union of VNV pilots to accept a reduction in remuneration.

But, the suspension of the bailout had put the future of the world's oldest airline at risk as it struggled to cope with the impact of the Covid-19 pandemic.

The pilots therefore had no real choice but to give in.

KLM Managing Director Pieter Elbers reacted on Tuesday by estimating that “an important step had been taken with the signing of the eight unions under this commitment clause”.

“The past few days have been incredibly intense for everyone, with great pressure on the company, negatively impacting its reputation and internal divisions.

But in the end, we, KLM and the unions, came to an agreement, ”he added.

Over a billion losses

KLM's savings plan provides for cuts of 15% in spending and the elimination of 5,000 jobs.

Some 3,000 pilots are expected to be particularly affected with wage cuts of up to 20%, according to Dutch media.

Air France-KLM suffered a net loss of 1.6 billion euros in the third quarter, while its profits reached 363 million euros in the same period of 2019.

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  • Air France

  • Covid 19

  • Coronavirus

  • Economy

  • Airline company

  • Netherlands