Air France-KLM said on Friday April 24 that it had obtained aid of 7 billion euros from France to cope with the virtual paralysis of world air traffic, caused by the Covid-19 pandemic. The company announced that it would later consider an operation to strengthen its equity.

This support, described as "historic" by the French Minister for the Economy, Bruno Le Maire, is broken down into a loan of 4 billion granted by a syndicate of six banks, guaranteed by the French State up to 90%, and by a direct loan of 3 billion from France.

The Dutch state promises 2 to 4 billion euros

The Dutch government, also a shareholder in the group, has pledged 2 to 4 billion euros to help KLM. 

The Air-France KLM group also intends to finalize in the coming months a transformation plan which will notably involve a review of Air France's activities.

Once this plan is finalized, the board of directors of Air France-KLM will consider carrying out an operation of reinforcement of its own funds, for which the French State will reflect on the conditions of its participation, said the group.

"Air France must become the most environmentally friendly airline on the planet"

Asked about TF1, Bruno Le Maire said that a nationalization of Air France or an increase in the capital of the group as a whole was "not on the agenda".

The Minister of the Economy however stressed that the aid given to Air France was "not a blank check" and that it was accompanied by conditions. First, "Air France must make an effort to be more profitable," he said. Then, "Air France must become the most environmentally friendly airline on the planet," continued Bruno Le Maire. "Air France must present us with a plan to reduce CO2 emissions, transform its fleet to be less polluting, emit less noise and be more respectful of the environment," he said.

Air France-KLM for its part indicated that its transformation plan should "be part of an ambitious environmental roadmap, in order to accelerate the group's sustainable transition".

Quoted in this press release, Ben Smith, the director general of Air France-KLM, thanked the French State and the banks for their support. "This support and the group's action plan will enable us to get through this crisis and tackle the future of Air France-KLM with ambition and determination," he said.

With AFP

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