From the start of the COVID-19 crisis, the Group has implemented adequate measures to protect its passengers and staff, as well as to preserve its financial sustainability.
In view of increasingly strict measures taken by many countries, including restrictions on travel opportunities or border closures, the Air France-KLM Group has drastically reduced its flight activity, which over the next few months should be less than 10% of last year’s level.
The Group has implemented strong measures since the beginning of the crisis which include, amongst others:
In solidarity with all employee groups, the Air France-KLM Board members, Chair and CEO will also participate in the effort in line with the measures applicable to the employees of the Group, with a similar reduction of their remuneration.
As the crisis continues, the conditions for a recovery remain uncertain, both in terms of our air operations, but more generally in terms of the timetable for economic and demand recovery.
Our current best estimates, incorporating the above-mentioned measures, show that in the absence of additional financing, a liquidity requirement is expected in the third quarter of 2020.
As a result, the Air France-KLM Group, Air France and KLM, have entered into in-depth discussions with their respective governments and financial institutions in order to grant the resources that will enable them to secure and sustain adequate levels of liquidity by all means, notably within the framework of the European Commission’s Temporary Framework on State Aid in force published on 19 March 2020.
At this stage, given the various options currently being considered and the quality of the discussions with the two States and financial institutions, the Air France-KLM Group is confident that it will be able to obtain additional financing to meet all its future financial obligations and enable it to ensure the recovery of its activity beyond the current crisis.
“We are facing an unprecedented crisis affecting without exception the airline industry, which is causing a great deal of uncertainty about the outlook for air transport,” said Benjamin Smith, Chief Executive Officer of Air France-KLM. “Since the beginning of this crisis, the Air France-KLM Group has done everything possible to ensure the health safety of its employees and customers and, on the financial side, to preserve its short-term liquidity and prepare for the future. Emergency measures have been rapidly implemented to reduce our costs and investments. I salute the exceptional commitment of our employees, who are giving their best in these difficult times, particularly the operational teams who are enabling the repatriation flights of our fellow citizens, as well as the transport of medical equipment to France and the Netherlands. It is now clearer than ever that support from our both Dutch and French governments is needed to meet our cash requirements and enable us to continue our operations once the crisis is over. Discussions with them and financial partners are ongoing, and I am confident in their willingness to support us and the future of the Air France-KLM Group, a key player for employment and the greater economies of our two nations, whose flags our airlines fly around the world.“
This post was published on 9 April 2020 23:27
Romanian carrier seeks protection from creditors as total liabilities reach €25.4 million; flight operations face…
Jetstar and Qantas have banned an Australian social media personality from flying with their airlines…
The Flemish Government has invoked a conflict of interest against the proposed changes to flight…
Brussels Airport will add eight manual border-control positions for arriving passengers by the end of…
Typhoon Champi has disrupted air travel across Taiwan, forcing the cancellation of more than 600…
Copenhagen Airport (CPH) is experiencing major queues at security screening after new requirements introduced by…