Air France-KLM has acquired €7 billion in government funds as the organization seeks to battle a collapse in travel demand across the world due to the coronavirus pandemic. The Franco-Dutch group was struggling to stay afloat, like many other airlines, amid the ongoing global crisis.
French authorities have said that Air Air France would get €3 billion in loans and another €4 billion in state-guaranteed funds. Further, the Dutch government said it was preparing between €2 billion and €4 billion in aid to KLM.
Organisation thanks government for the aid
“On behalf of the Air France-KLM board of directors, I would like to thank the French state and our banking partners for this aid, which will enable the Air France-KLM Group to overcome this unprecedented crisis,” said Anne-Marie Couderc, chair of the Air France-KLM board. She added, “It is also the recognition of the strategic role our 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 ourselves worthy of the trust placed in us.”
When the outbreak began, Air France-KLM estimated that it would cost the group between €150-€200 million in February-April alone. Company chief executive, Ben Smith said: “This financing will give us the opportunity to rebuild. Faced with the upheaval the world is going through, we are going to have to rethink our model immediately.”
Air France and KLM have a fleet of 550 aircraft, it covers 312 destinations in 116 countries around the world.
Also Read: WTTC Calls On G20 Ministers To Lead Recovery For The Tourism Sector