Air France-KLM is reportedly in talks over state-backed bailout packages. (KLM photo)
AMSTERDAM/PARIS--Air France-KLM was reported on Friday to be in talks with banks to receive state-guaranteed loans. These bailout funds would be of utmost importance as the airlines hunker down for an unprecedented shutdown.
According to Reuters, Air France-KLM is in talks with banks to receive up to six billion euros in loans guaranteed by the French and Dutch governments.
According to sources, both governments are working to pump in “as much as they can.” Under the most likely scenario, Air France could obtain about four billion euros in French-guaranteed loans while KLM receives close to two billion euros backed by The Hague.
The French and Dutch governments seem to be putting aside previous grievances arising from the Dutch State’s surprise acquisition of a 14-per-cent stake in Air France-KLM in February 2019. They now appear to be joining forces to rescue their national carriers.
“We’ve been in discussions for a long period of time with KLM and Air France, and very specifically with the French State,” Dutch Finance Minister Wopke Hoekstra told Reuters. “It’s extremely important to help this vital company through these difficult times.”
The French government has already declared its intention to stand behind its national airline. A capital injection was already the most likely option, rather than an increase in shareholding, as this could have further exacerbated tensions with the Dutch. However, this is not to be ruled out.
Tensions have been high between the two governments over the management of Air France-KLM since last year.
