The European Commission (EC) has given the French government final approval to provide the national airline Air France with additional financial support. The French Finance Minister announced this on Sunday.
Although Minister Bruno Le Maire does not elaborate on what the support package consists of, reports the news agency Reuters that the package has a value of about 3 billion euros. The additional state aid should alleviate the company’s indebtedness.
In return for the aid, Brussels would demand that Air France give up some of the so-called slots, or coveted airport take-off and landing rights, at Orly airport in Paris. Such a requirement is not new. For example, the German Lufthansa had to do the same last year in exchange for billions in support from the German government. The company then gave up 24 slots at Munich and Frankfurt airports.
It is not yet known whether parent company Air France-KLM will agree with the EC’s requirement. According to the French minister, the board of the aviation combination will meet on Monday to discuss and approve the aid package. According to Le Maire, the company is willing to give up slots in exchange for aid, but not the 24 that were initially demanded by Brussels.
Air France-KLM’s debt has increased by around 5 billion euros to 11 billion euros. France and the Netherlands, both of which have an interest of about 14 percent in the airline combination, have already helped the airlines with 10.4 billion euros in loans and a credit guarantee. Of this, 3.4 billion euros came from the Dutch government.
The national airlines are seen as strategically important companies for the Dutch and French economy. The Netherlands left earlier know to be in talks with Brussels about the conditions under which KLM could receive extra financial support if necessary.
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