Published on : Monday, April 27, 2020
In the midst of the coronavirus pandemic, Air France-KLM has managed at least €7 billion in government funds as the group seeks to overcome a collapse in travel demand.
There is a raft of limitations on travel and the Franco-Dutch airline group is struggling to stay afloat.
While the french authorities have confirmed Air France would get €3 billion in loans and another €4 billion in state-guaranteed funds.
The Dutch government mentioned it was preparing between €2 billion and €4 billion in aid to KLM.
Anne-Marie Couderc, chair of the Air France-KLM board said that on behalf of the Air France-KLM board of directors they would like to thank the French state and their banking partners for this aid, which will enable the Air France-KLM Group to overcome this unprecedented crisis.
It recognizes the strategic role their group plays in the service of France, the Netherlands and our fellow citizens.
The management and all employees of the Air France-KLM Group will undertake every effort to prove themselves worthy of the trust placed in us.
Air France-KLM estimated the outbreak would cost the group between €150-€200 million in February-April alone.
Company chief executive, Ben Smith, warned the government aid was “not a blank cheque” and it needed tough action on costs and performance.
Through financing they will get an opportunity to rebuild.Faced with the upheaval the world is going through they are going to have to rethink their model immediately.
In the days ahead a transformation plan, which will be finalised and is expected to include economic, financial and environmental commitments.
The group is the result of a merger between Air France and KLM in 2004 and has a fleet of 550 aircraft, it covers 312 destinations in 116 countries around the world.
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