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Bank loan guarantees: Paris grants Air France billion aid | message


The aviation group Air France-KLM can count on government grants of between nine and eleven billion euros in the Corona crisis. France supports Air France with seven billion euros in loan aid. The Dutch government promised its sister company KLM two to four billion euros.

France will grant Air France three billion euros in government loans, Economy Minister Bruno Le Maire said on Friday on TV channel TF1. In addition, there would be state guarantees for four billion euros in bank loans. “We have to save our national airline,” said Le Maire. But: “This is not a blank check.” Air France must become more profitable and become the airline that is the most careful with the environment worldwide.

Air France-KLM said that the state loan would be granted as a shareholder loan for four to a maximum of six years. The bank loan was granted for twelve months and should also be able to be extended twice for one year. The financial aid still had to be approved by the EU Commission.

Air France-KLM is also considering increasing its share capital and the French government is considering a stake in it, the company said. Le Maire assured one nationalization don’t be planned. The French state is currently the largest shareholder of Air France-KLM with 14.3 percent.

In addition to the aviation group, France also wants to help the automotive industry. Le Maire said the government is working on guarantees for bank loans of up to five billion euros for Renault. Not only have airlines worldwide suffered severe crises with the collapse of air traffic due to the corona pandemic, the automotive industry is also suffering from slumps in production and sales. The French government is also planning further aid for the restaurants and their employees affected by the Corona crisis.

/ pog / DP / fba


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Image sources: Air France

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