December 4, 2020

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Cabinet approves KLM’s restructuring plan

Cabinet approves KLM's restructuring plan

The Cabinet has approved the cost-cutting restructuring plan offered by KLM. This enables KLM to draw on the remainder of the € 3.4 billion in state aid.

Previously, Minister Hoekstra had refused to pay out the full amount because the pilots, unlike other KLM employees, were not ready to hand over their salaries. Yesterday the VNV pilots’ union reached an agreement on wage restraint for KLM employees for the next five years

Ministers Hoekstra (Finance) and Van Nieuwenhuizen (Infrastructure) informed the House of Commons about the agreement. The wage moderation agreements are based on the principle that the strongest shoulders carry the heaviest burdens. In the letter, ministers say that given the importance of KLM to the international network at Schiphol, the cabinet is providing financial support. “This is an important contribution to the Dutch economy and employment.”

Of the € 3.4 billion loan made available in June last year as a result of the corona crisis, € 2.4 billion consisted of a guarantee for bank loans and € 1 billion of a direct loan. In return, KLM is sticking to the sustainability requirements in addition to wage restraint.