French Government offers loans and State-guaranteed funds to Air France-KLM
French government has announced support for Air France-KLM with nearly €3 billion in loans to the airline and €4 billion in state-guaranteed funds to keep the airline in business. Air France-KLM recently announced that the airline is losing nearly €25 million per day due to lockdowns imposed after coronavirus pandemic.
Support from the Netherlands government for KLM has been announced as well. Dutch Finance Minister Wopke Hoekstra gave a briefing within an hour of his French counterpart’s to announce the KLM aid still awaiting approval. As per the initial reports, Netherlands will offer KLM €2 billion in loans and €4 billion in state-guaranteed funds.
Germany’s Lufthansa is also negotiating government aid as the major airlines across the world suffer from lockdowns and grounded flights. Lufthansa has also decided to close its low-cost venture.
“We have repeatedly said that as the government we will do all that we can to help KLM through this crisis,” Hoekstra said, citing its “vital role” in the Dutch economy.
Group Chief Executive Ben Smith said in a statement that the help from governments isn’t a black check. He added that the airline will have to undergo cash cutting measures amid coronavirus pandemic.