THE HAGUE | After France, the netherlands come to the rescue of Air France-KLM while providing assistance to 3.4 billion euros ($5.2 billion) to the Dutch company to allow him to cope with the crisis” linked to the coronavirus, according to a press release issued Friday by the group.
This assistance, in the form of loans, adding to the 7 billion (10.7 billion $) placed on the table by France on 7 may to ensure the survival of the French company, brought to its knees as the entire sector by the pandemic.
At the end of April, The Hague had promised for his part to assist KLM in an amount between 2 and 4 billion euros.
Using a 3.4 billion euro consists of a loan of 2.4 billion granted by eleven banks, including three in the netherlands, the guaranteed 90 % by the Dutch State and a direct loan to KLM for € 1 billion.
The direct loan to the State is linked to the “commitments of the company in terms of sustainable development, as well as the recovery of performance and the competitiveness of KLM, including a plan of global restructuring and the contribution of its employees,” adds the group without more details.
Air France has received 4 billion euros of bank loans guaranteed 90 % by the French State and a direct loan to the State of $ 3 billion, also in consideration of commitments to improving its efficiency and reducing its CO2 emissions.
In total, the carrier of the franco-Dutch has thus benefited from 10.4 billion euros in aid, Paris and The Hague to enable him to overcome the crisis.
France and the netherlands each have 14 % of the franco-Dutch group as the airline company Air France shape with KLM.
More than 95 % of its traffic is evaporated in the second quarter in part because of movement restrictions and border closures decided upon everywhere in the world to curb the spread of the virus. And the recovery promises to be slow.
“Thanks to the support of the Dutch and French, I am certain that the Air France-KLM group will emerge stronger than ever from this crisis”, welcomed the ceo of Air France-KLM, quoted in the press release.
“In the coming period, we will work to restore our network, and on the other hand, the implementation of a restructuring plan, and the demanding conditions related to this financial support”, said the director general of KLM, Pieter Elbers.