“KLM is like a domino at the start of a long line,” Finance Minister Hoekstra said Friday evening. To prevent the stone from falling over and taking the rest of the row in its fall – such as loaders and unloaders, suppliers and companies in the tourism sector – the Dutch government will support the aviation company with 2 to 4 billion euros.
The French government in turn came up with a support package of 7 billion euros for Air France, with which the parent company Air France-KLM can count on a total of around 10 billion euros in emergency money.
The airline company is therefore not alone. Other European countries are also coming with support packages to keep ‘their’ airline afloat. The corona crisis is hit hard worldwide by the airline industry: in the worst scenario – with the most extensive spread of the virus – airlines are estimated to lose $ 113 billion in revenue.
So, in order to save their economy, a lot of money goes ‘up in the air’ in Europe. An overview:
Germany
Germany’s largest airline – and one of the largest airlines in Europe – is Lufthansa. The German government may become a silent partner of the company: an important shareholder, but without voting rights. Opinions on this matter in German government circles still differ. In any case, the government plans to pump a substantial amount into society. How much exactly is not yet known, but it is billions.
About 700 of Lufthansa’s 760 aircraft are currently stationary. The company also hopes to receive financial support from the governments of Belgium, Austria and Switzerland, where subsidiaries fly.
Belgium
One of those subsidiaries is Brussels Airlines. That company has asked the Belgian government for 290 million euros. The federal government is even holding talks to take over Brussels Airlines. Without support, the company goes bankrupt. Until May 15, all planes will remain on the ground.
Other Belgian airlines also need help. Tui Fly Belgium has asked the government for 250 million euros. Air Belgium, Sabena Aerospace and baggage handlers Aviapartner and Swissport also want support, but they have not yet stated amounts.
Austria
In Austria, approximately 800 million euros is needed to rescue Austrian Airlines. That is a complicated operation, because the airline is a subsidiary of the German airline Lufthansa (just like Brussels Airlines). But Austrian Finance Minister Blümel has said that everything is being done to keep society afloat.
Environment Minister Gewessler wants to attach a condition to the aid: Austrian Airlines’ CO2 emissions must be reduced, she believes.
Scandinavia
Scandinavian Airlines (SAS), the airline of Sweden, Denmark and Norway, also receives state aid. In Sweden, EUR 500 million is available for this. The Danes have 137 million in cash to keep SAS afloat. Norway is also going to pay.
Finnair, the flag carrier of Finland, is supported with EUR 600 million.
France
Finally France. We already knew that the French government is investing 7 billion euros in Air France. But she also wants to keep other national industries afloat. So not only Air France – you don’t hear the addition KLM from the French – but also car manufacturer Renault receives five billion euros in support. Nationalization is also an option at Air France, according to Transport Minister Borne.
As in the Netherlands, a debate is taking place in France on any environmental restrictions to be imposed on companies in exchange for state aid. MEPs Canfin (Renew Europe) and Delli (The Greens) believe that bailouts should be used to move towards a greener economy. In the end, that only remained with a call. For state aid, companies (including airlines) can only benefit from state aid if they also pay tax in France.
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