KLM

Especially because reports from state agent Jeroen Kremers show that KLM has not complied with some of the conditions, Kaag writes. Kremers was appointed by the cabinet to monitor compliance with the agreements made.

KLM received financial help in 2020 when global air traffic almost came to a standstill due to the corona pandemic. A group of banks provided emergency credit, guaranteed by the government. In return, KLM had to promise to structurally reduce costs, including through a salary sacrifice for staff.

In various reports, including his latest one, the state agent concludes that the company is not complying with various agreements. In his latest report, Kremers suggested that Kaag consider using the courts to force KLM to comply with the agreements. After examining various options by the two lawyers, this does not seem feasible.

Filing a lawsuit because KLM has not fulfilled the agreement to structurally save costs has a “little chance of success”, the lawyers say. The text of the agreement concluded between the State and KLM is not precise enough for this. A second reason why a lawsuit has little chance of success is that KLM has now repaid the loan. However, the other legal advisor believes that the State still has rights against KLM for the period before repayments were made.

The fact that the State refrains from filing a lawsuit does not mean that the air has been cleared between both parties, according to Kaag’s letter. “Failure to comply with the agreements with the State has undeniably harmed KLM’s social position and does not contribute to support for providing support to individual companies in the future,” she writes. In addition, the government continues to discuss costs with KLM and the need to take action against tax avoidance by flying personnel.

KLM response
KLM, which did not agree with the state agent’s assessment, responded to Kaag’s decision as follows: “Without the government, KLM would not have survived the corona crisis. We are very grateful to the Netherlands for this. In unprecedented circumstances, we have made agreements aimed at maintaining the accessibility of the Netherlands and the continued existence of KLM. That worked.”

The airline continues: “Dutch people can fly directly to 160 destinations worldwide and KLM is again in the black. The loans were repaid in June 2022. We will continue to pay close attention to structural costs and continue to make KLM more sustainable, so that KLM’s competitive position is maintained.”

One of the state aid conditions was to stop facilitating possible tax avoidance. KLM indicates that it still plans to arrange for staff living abroad to pay compensation for commuting. The airline also wants to continue with plans to structurally reduce costs.

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2023-10-13 17:25:00
#Kaag #lawsuit #KLM #violations #state #aid #conditions