Sunday, May 26

Air France-KLM Talks About Billions in Extra State Aid

Aviation group Air France-KLM is in talks with France and the Netherlands about additional state aid. Sources say that to Bloomberg news agency.


The French newspaper Le Monde had previously written that Air France-KLM would like to raise an additional 6 billion euros in extra capital from the French and Dutch governments and other investors.

The intention is to prevent nationalization of the aviation combination.

Air France-KLM has already had the support of a total of 10.4 billion euros from the French and Dutch states, both of which are shareholders of the company, each with a 14 percent stake.

According to the sources, an additional 4 billion euros in other state aid can be added. This would involve 3 billion euros in aid from Paris and 1 billion euros from The Hague.

In addition, early next year, the company would like to raise an amount of 2 billion euros from investors by issuing loans. Air France-KLM declined to comment on the reporting by Bloomberg and Le Monde.

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