financial and business news

France and the Netherlands agree to € 3.4 billion in KLM aid

(Updated with details, context)

by Toby Sterling and Laurence Frost

AMSTERDAM, June 25 ( – France and the Netherlands have
concluded an agreement on the Dutch contribution to the plan
Air France-KLM support, under which the government
will release € 3.4 billion in aid from KLM,
we learned Thursday from two sources familiar with the matter.

The Dutch Minister of Finance has scheduled a
press conference Friday morning to detail the modalities
of this help.

The Netherlands will release 3.4 billion euros under the
direct or guaranteed loans and will appoint a member to
within the group’s board of directors, which will not have
voting rights, said these sources.

Air France-KLM distributed a press release in the evening
his site confirming this figure of 3.4 billion, “in order to
overcome the crisis and prepare for the future. “

No further comments could be obtained immediately.

Air France received aid of seven billion in early May
euros from the French State to overcome the crisis binds the
Coronavirus pandemic, which paralyzed air traffic.

France and the Netherlands each hold 14% of the capital
of Air France-KLM.

The Dutch contribution has long been delayed by
tense negotiations between Paris and Amsterdam, France
refusing to grant a director seat in the Netherlands for
do not weaken your position on the board.

By virtue of the compromise apparently found between the two
States, administrator appointed by the Dutch government
will not have the right to vote but will be able to ensure that the money
Dutch taxpayers will serve well to finance
KLM operations, say the same sources.

Air France-KLM was born from the merger between the two
national airlines in 2004.

The Netherlands has pushed in recent years to obtain
more board representation and autonomy for KLM.
Negotiations carried out on this subject before the pandemic had
failed but the aid plan could lift some of the
obstacles, add these sources.

The theme was addressed by the French President Emmanuel
Macron and Dutch Prime Minister Mark Rutte during
their interview on Tuesday The Hague, they continue.
(French version Jean-Stphane Brosse)