Air transport: in turn, the Netherlands flies to the rescue of Air France-KLM

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This Friday, June 26, the Dutch company KLM obtained a loan of 3.4 billion euros - thanks to the support of the Dutch state - enabling it to overcome the difficulties arising from the pandemic linked to the new coronavirus, the group announced. Air France-KLM in a press release.

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With our Brussels office,

KLM (the battalion part of the Air France-KLM alliance) will first receive a direct loan of one billion euros granted by the Dutch state. The second part of the aid will consist of a € 2.4 billion revolving line of credit. This second part of the envelope will be provided by eleven banks, three of which are Dutch, and these loans will be guaranteed by the State.

Keep your head above water

This lifeline should allow KLM to keep its head above water. The Royal Air Navigation Company, since that is its name, was the first to announce the devastating effects of the pandemic on March 14 with a decision to cut 1,500 to 2,000 jobs.

Aid from the Netherlands will not be free for the airline. On the one hand, there are profitability requirements with, for example, a 15% reduction in KLM costs. There are also climate targets with a halving of CO2 emissions (carbon dioxide).

Schiphol remains a hub

In return for its contribution negotiated directly with the French government, the Batavian government has obtained that Amsterdam-Schiphol airport remains a hub of the Air France-KLM alliance with a notice now extended from nine months to five years before any reduction in the number of flights.

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