The airline Air France-KLM will receive up to 11 billion euros of financial support from the French and Dutch governments, at a time when the coronavirus pandemic is pushing many of these businesses into bankruptcy.
On the Dutch side, support for KLM will range between 2 and 4 billion euros, as announced by the government of the Netherlands. France has already committed to hand over 7 billion to Air France.
This initiative is still subject to the approval of the entities responsible for the regulation of competition and it does not arrive without one. This aid presupposes conditions such as the non-distribution of dividends or premiums during the period in which the company is receiving support. Workers will also have to see their wages reduced.
The support comes after the International Air Transport Association - IATA said last week that the loss of revenue for European airlines could reach $ 89 billion this year, and that demand could fall 55% compared to to 2019 levels, putting 6.7 million jobs at risk.