Air France-KLM secures €10 billion in state aid from French and Dutch governments

4/30/2020

Airline chiefs praise governments for financial aid package comprising state backed and shareholder loans that will be used to overcome an ‘unprecedented crisis’

Air France-KLM has secured around €10 billion in state backed loans from the French and Dutch Governments after warning of a cashflow shortage resulting from the coronavirus crisis striking in the autumn.

The financial aid package comprises a €4 billion state backed loan and a €3 billion direct shareholders loan from the French government. Dutch ministers have pledged state aid of between €2-€4bn to the group.

Benjamin Smith, CEO of the Air France-KLM Group, said: "This aid, along with the Group's action plan, will enable us to withstand this crisis and foresee the future of Air France-KLM with ambition and determination. We are a strong Group and we are united in face of this crisis. I would like to once again salute the exceptional commitment of our employees for their dedication to the repatriation of our fellow citizens, the transport of medical equipment, and maintaining the essential links with territories.”

Pieter Elbers, KLM President & CEO, commented: “Air France and KLM are currently weathering a storm of unparalleled magnitude. The Dutch government has responded with aid on an equally unprecedented scale. The Netherlands can be assured of our total commitment to living up to the trust that has been placed in our company.”

This financial aid remains subject to approval by the European Commission.

The French government’s deal includes:
  • A state-backed loan of €4 billion. The French government is guaranteeing this loan up to 90% with a payback period of 12 months with two consecutive one-year extension options.
  • A direct shareholder’s loan of €3 billion from the French state to Air France-KLM with a maturity of four years. The loan has two consecutive one-year extension options.
The funding will support the airline’s transformation plan including economic, financial and environmental commitments said Air France-KLM. This will include adapting Air France's activities “to the new market reality brought about by the crisis”, the airline said.