In the same way as Lufthansa and the main American airlines, Air France-KLM will benefit from massive financial aid from France and The Netherlands to overcome the coronavirus crisis.
Since several weeks, the Air France-KLM Group is conducting discussions with banks to borrow several billion euros in the form of credits guaranteed by the French and Dutch states, in an attempt to face a lasting paralysis of its activity due to the coronavirus pandemic, sources said to the Reuters news agency.
The most likely scenario would be a loan of four billion euros guaranteed by France for Air France combined with a loan of two billion euros guaranteed by The Netherlands for KLM. “We are naturally in permanent discussions with the two governments,” said an Air France-KLM spokesperson.
Several other solutions have been considered, including a direct injection of capital by issuing new shares, as well as convertible bonds. This assumption of a capital injection remains a possibility in the medium term, including a temporary renationalisation of Air France-KLM. “This is one hypothesis among others that we do not rule out. In times of crisis, we must have all the means, all the tools of public intervention, including this one,” said Jean-Baptiste Djebbari, the French Secretary of State for Transport, to AFP.
The French and Dutch states each own 14% of the group.