Airline company Air France receives a financial injection of 4 billion euros.
The company, the French state and the European Commission (EC) have reached agreement on this, Air France reports in a press release (pdf) on Tuesday.
The agreement comes at an ideal time, as Air France-KLM is heading for an expected quarterly operational loss of EUR 1.3 billion.
The new injection of 4 billion consists of 3 billion in loans and a share issue of 1 billion.
During the Easter weekend it became clear that the parties were close to an agreement.
As part of the deal, Air France-KLM released preliminary first-quarter figures, which are deep red due to the ongoing corona crisis.
The financial injection comes on top of the 7 billion euros in aid that the French state already provided last year to the ailing airline, which is also a partner of KLM.
Negotiations are still underway on additional support for Dutch society.
KLM says in a response on Tuesday that it is pleased with the support for the partner.
"This is a very important step for the Air France-KLM Group and Air France. This will further strengthen the group's financial base. This is necessary given the enormous negative impact of COVID-19 on aviation."
Talks about support for KLM are still ongoing
The Dutch State also agrees to support Air France.
The Netherlands owns 14 percent of the shares of Air France-KLM.
There is therefore no agreement on extra support for KLM.
Discussions are still being held about this.
Since the outbreak of the corona crisis, Air France-KLM has been in deep trouble, because passenger numbers have fallen unprecedentedly while spending has continued.
The company's debt mountain has now risen to many billions.
Although last year France and the Netherlands already offered support totaling EUR 10.4 billion, of which EUR 3.4 billion from the Dutch State, additional support was nevertheless necessary.