Friday, 24 April 2020

KLM to get bailout from the government of 2 to 4 billion euros

KLM grateful for the government's intention to give it
€2 to 4 billion euros

There is no doubt the current coronavirus COVID19 crisis has an unprecedentedly large impact on aviation around the world. Since the start of this crisis, many airlines,  including the Dutch carrier KLM has taken numerous measures to cut costs, stem losses and thought up ways to cope with the crisis and coming out the other side in a viable position.

On 9th April the Air France-KLM Group announced that it would need an injection of cash to survive and for just over two weeks the Air France - KLM group have been in discussions and negotiations with the French and Dutch governments.

On Friday night, the Air France-KLM group and the French state have communicated about concrete agreements regarding support that have been made between the French state for the support of Air France. These agreements are still subject to approval by the European Commission. KLM is of course also very happy with this and refers for details to the press release of Air France-KLM.

Given the public importance of KLM's destination network from Schiphol, the Dutch state took a 14% share in Air France-KLM last year. Even now, during the COVID19 crisis, the government has expressed its support for the KLM Group. The Dutch State and KLM are currently discussing the specific features of the aid and the conditions attached to it by the Cabinet. Ministers Hoekstra and Van Nieuwenhuijzen explained this tonight during a press conference. It concerns a package of 2 to 4 billion euros in government guarantees and loans.

Pieter Elbers - KLM President & CEO said "On behalf of all KLM colleagues, I would like to express my deepest gratitude and appreciation for the expressed and significant support from the Dutch government. Also in the future, the 30,000 KLM colleagues committed to continue to fulfill the important role for Dutch society in connecting the Netherlands to the world and the world to the Netherlands. The ministers underline the role of KLM as a major employer and the vital importance of KLM for the Dutch economy. KLM wants to stay ahead with its ambitions and play a pioneering role in the field of sustainability. Air France and KLM are currently going through a storm of unprecedented magnitude. The Dutch government provides support to KLM of an unprecedented size. The Netherlands can count on our full commitment and on building trust in our company."

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