connect with us
Greece's latest tourism industry news by Greek Travel Pages (gtp)

KLM Secures Loans of €3.4bn to Overcome Covid-19 Crisis

Photo source: KLM

Photo source: KLM

The Air France – KLM Group recently announced that KLM is to receive a financial support package backed by the Dutch State in the amount of 3.4 billion euros for the airline to “weather the current Covid-19 crisis and prepare for the future”.

Thε financing includes two loans for KLM and its subsidiaries made up of 2.4 billion euros, granted by 11 banks, of which three are Dutch banks and eight are international banks; and a direct loan of 1 billion euros, granted by the Dutch State to KLM.

Conditions associated with the direct state loan are linked to the airline becoming more sustainable as well as the restored performance and competitiveness of KLM, including a comprehensive restructuring plan and contributions made by employees.

Photo source: KLM

Photo source: KLM

KLM has undertaken to suspend dividend payments to its shareholders until these two loans have been repaid in full.

“In the coming period, we will be working on the restoration of the route network and, on the other hand, on the development of the restructuring plan and the far-reaching conditions that have been imposed on the package,” KLM CEO Pieter Elbers said.

This state aid, which remains subject to approval by the European Commission and the Dutch Parliament, is expected to provide KLM with the necessary means to meet its obligations and adapt in a sector that the global crisis will severely disrupt.

The Dutch state aid to KLM comes in addition to the 7 billion euros in funding granted by the French State to Air France announced in May.

The Air France-KLM Group was created in 2004 when a merger took place between Air France and KLM.

About the Author
This is the team byline for GTP. The copyrights for these articles are owned by GTP. They may not be redistributed without the permission of the owner.

Add your comment

*