November 24, 2020

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“Consultation on Billions in Support of Air France-KLM”

"Consultation on Billions in Support of Air France-KLM"

According to the French newspaper Le Monde, Air France-KLM is in consultation with the French and Dutch governments and other investors about a new support round of 6 billion euros. Air France-KLM is badly hit by the corona crisis. KLM was previously promised a EUR 3.4 billion support package from the Netherlands and Air France EUR 7 billion from France.

According to Le Monde, the airline group would need 4 billion in support from the two governments this time around and then want to raise 2 billion from private investors early next year.

Prepare for additional support

Finance Minister Hoekstra previously said he would be ready to talk about additional assistance if it appears that the promised loans will not be enough to keep afloat. You can now hear behind the scenes in The Hague that additional support is indeed being discussed. The amount of support is still being discussed.

At the end of last month, Hoekstra threatened not to provide any further tranches of the previously promised support, as the unions failed to comply with his demand after five years of wage restraint. Ultimately, the unions agreed.