The Dutch government will provide from €2 to 4 billion in emergency coronavirus aid to the KLM flagship air carrier. Its parent company, Air France-KLM, will also receive €7 billion from the French government.
The KLM aid package of up to €4 billion ($4.32 billion) will likely come as a combination of state guarantees and bank loans, Dutch Finance Minister Wopke Hoekstra said Friday. The flagship carrier of the Netherlands has been hit hard by the coronavirus crisis and the majority of its planes remain grounded.
The announcement came shortly after Paris pleaded a hefty sum of €7 billion to Air France, that is the parent company of the KLM.
“Air France’s planes are grounded, so we need to support Air France,” French finance minister Bruno Le Maire stated.
French aid package will come in a form of a direct €3 billion loan from the state, as well as a €4 billion loan, provided by a consortium of six French and international banks. Still, 90 percent of the second loan will be guaranteed by the state as well.
The Covid-19 aid will come with certain conditions including that “Air France must become the most environmentally friendly company on the planet,” Le Maire noted.
The airline industry has been devastated by the coronavirus pandemic, as demand for passenger travel plummeted amid lockdowns and travel restrictions, imposed by many nations worldwide. The Air France-KLM group is no exception and the shares of the company have dropped by 55 per cent so far this year.
