Moving People

News

/ News / Article

  • AFP

Dutch say Air France-KLM cash boost might be needed




Dutch Finance Minister Wopke Hoekstra said today the government was willing to discuss another cash injection for Air France-KLM should a multi-billion bailout fail to keep the troubled airline flying.

Hoekstra’s comments come as airline chief executive Benjamin Smith said this week that multi-billion-euro packages for the French and Dutch national carriers would keep it in the air for less than a year.


“We’ve always said, also to the Dutch parliament, that the first phase is about loans,” said Hoekstra.

“But the possibility also exists that a real capital injection, not loans, may be needed to ensure the company’s existence and survival,” Hoekstra told the NOS public broadcaster.


Airlines faced steep drops in revenue as countries imposed lockdowns earlier this year to stem the spread of the coronavirus pandemic. Several airlines have already gone under.


A number of countries stepped in with support, including France which provided €7.0 billion (US$8.2 billion) to Air France and the Dutch government which provided a €1.0 billion loan and 11 banks a further €2.4 billion to KLM.


The top Dutch finance official however cautioned that any cash injection would come with conditions and “if, and under what conditions will be discussed within the coming weeks and months.”


Smith on Monday said discussions were already underway with shareholders on shoring up the airline group, and steps would be taken before the next regular annual meeting in the second quarter of next year.

The airline group had €14.2 billion in cash or available under credit lines.


Major shareholders include the French government with a 14.3 percent stake, the Dutch government at 14 percent, and Delta and China Eastern airlines which each hold an 8.0 percent stake.

Recent Posts

See All
construction-image1.jpg

Subscribe and keep up to date with all the latest news from Oakmark

Subtle Shapes Transparent
WEST AFRICA'S NO.1 ECONOMIC AGENTS

Oakmark Global Vision provides a bespoke business package to established corporate bodies, investors, and entrepreneurs who desire to enter the West & Pan African market. Find out more >

© 2020 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

Regional Office

International Office

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T

Nigeria 

+234 -(0)- 929 207 02

+234 (0) 704 497 6500

info@oakmarkglobalvision.com

King Court, 17 School Road

Hall Green, Birmingham

United Kingdom  B28, 8JG

+44 (0) 121 244 1814

+44 (0) 746 625 2505

info@oakmarkglobalvision.com

 Oakmark Global Vision Limited