Air France-KLM confirms that it has obtained the aid of 7 billion euros from the French State to cope with the virtual paralysis of its activity caused by the coronavirus pandemic.
The aid comes in two loans, details the press release from the airline group released last night:
- A loan guaranteed by the French State (PGE) in the amount of 4 billion euros granted by a syndicate of six banks. This loan benefits from a 90% guarantee from the French State and a 12-month maturity, with two consecutive one-year extension options, exercisable by Air France-KLM.
- A shareholder loan from the French State in the amount of € 3 billion and with a four-year maturity, with two consecutive one-year extension options exercisable by Air France-KLM.
Discussions are continuing with the Dutch state, which is also a shareholder in the group, for additional aid, between 3 and 3.5 billion euros, which KLM is currently negotiating with the Dutch government.
Once this plan is finalized, the board of directors of Air France-KLM will consider carrying out an operation to reinforce its own funds, for which the French State will reflect on the conditions of its participation, indicates Air France-KLM. Interviewed yesterday evening at 8 p.m. on TF1, the French Minister of Economy Bruno Le Maire said that nationalization of Air France or an increase in the capital of the group as a whole was « not on the agenda ».
The French Minister of Economy, however, stressed that the aid given to Air France was « not a blank check » and that it was subject to conditions. First, « Air France must make an effort to be more profitable, » he said. Then, « Air France must become the most environmentally friendly airline on the planet, » said Bruno Le Maire.
« Air France must present us with a plan to reduce CO2 emissions, transform its fleet to be less polluting, emit less noise and be more respectful of the environment, » he said.