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France and the European Commission (EC) have agreed on the main lines of a refinancing plan for the French branch of the Franco-Dutch airline group Air France-KLM (AF.PA).
French Finance Minister Bruno Le Maire, who broke the news on Sunday, did not say how much money was involved, but confirmed that the airline group’s board was due to meet on Monday to discuss and l ‘approve.
Any amount will be in addition to the € 10.4 billion ($ 12.2 billion, £ 8.8 billion) in government guaranteed loans it received last year as the coronavirus pandemic hit his balance sheet.
France and the Netherlands, which together hold 28% of the company’s capital, have been in talks for months with the people of Brussels over a financing plan for the group, whose net debt has climbed to 11 billion euros. last year.
In February, the group recorded a net loss of 7.1 billion euros for 2020, which it largely blamed on the COVID crisis, while revenues fell to 11.1 billion euros, a 59% decrease compared to last year.
The number of passengers fell 67.3% from the previous year, to just 34,065 passengers last year.
The group announced that since the start of the pandemic, it had reimbursed customers 2.3 billion euros, planes being immobilized and travel interrupted, including 0.8 billion euros in the fourth quarter alone.
But months of talks have been delayed by EU demands that Air France cede Paris-Orly take-off and landing slots and that KLM cede slots to Amsterdam Schiphol in exchange for help. .
The Mayor said that the carrier had abandoned some discussion slots, but not the 24 initially requested by the EC. Divesting 24 aircraft slots would have put Air France on an equal footing with those abandoned by German Lufthansa (LHA.DE) in Frankfurt and Munich as part of its state-backed capital increase.
The airline was created in 2004 by the merger of the Dutch airline KLM and its French counterpart Air France.
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Global aviation has been hammered by the coronavirus pandemic amid stranded flights and lockdowns.
Many airlines have been forced to make tough decisions in order to save their businesses, including cutting jobs to save money, while trying to navigate the ever-changing landscape of government action.
The International Air Transport Association (IATA) said the industry reported an estimated net loss of $ 118.5 billion (£ 85.7 billion) in 2020, a further revision of its forecast of 84 , $ 3 billion in June of last year.
A net loss of $ 38.7 billion is also expected in 2021, more than double the expected loss of $ 15.8 billion six months ago.
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