Air France-KLM to get €10 BILLION Covid-19 aid in loans from France & Netherlands
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 on 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 pledged €7 billion to Air France, KLM’s parent company.
“Air France’s planes are grounded, so we need to support Air France,” French Finance Minister Bruno Le Maire stated.Also on rt.com Germany’s flag-carrier airline Lufthansa in ‘intensive negotiations’ for state aid to stay afloat
The French aid package will come in the form of a direct €3 billion loan from the state, and a €4 billion loan provided by a consortium of six French and international banks. Ninety 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 nations around the world.
The Air France-KLM group is no exception, and shares of the company have dropped by 55 percent so far this year.Also on rt.com Malta flag carrier set to fire 80 PERCENT of pilots after talks fail amid coronavirus crisis
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