Air France-KLM needs another six billion euros

Air France (Photo: Pixabay).
Air France (Photo: Pixabay).

Air France-KLM needs another six billion euros

Air France (Photo: Pixabay).
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The French-Dutch aviation group Air France-KLM apparently needs further support from the home states. Specifically, this time it is about up to six billion euros that could be granted in the form of grants and loans.

According to the French La Monde, negotiations are already underway with the governments of France and the Netherlands. Accordingly, France should grant three billion euros and the Netherlands should transfer one billion euros. The remaining two billion euros could be taken out in the form of loans, with a state liability for this. How the two states divide this is still unclear.

While France has already paid out large parts of the aid originally granted, it stalled in the Netherlands. The final green light was only given after the management and the pilots' union had agreed on an austerity package. In general, the Dutch government is much more cautious than the one in France. The bottom line is that Air France-KLM has already been granted 10,4 billion euros, this sum including both loans and grants.

If the funds now additionally requested are approved by the two countries, the Franco-Dutch group would have devoured the proud sum of 16,4 billion euros since the beginning of the corona crisis. Another lawsuit from Ryanair would therefore not be long in coming.

In various local media reports, members of the French government expressed benevolence regarding further state aid for Air France. The company will continue to be supported. People in the Netherlands are still cautious and recently brought the scenario of the separation of KLM into play. So there will still be some need for discussion between the two shareholders before further funds are approved for the group of companies.

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