Audio By Carbonatix
Air France-KLM has secured at least €9bn in government aid, as the Franco-Dutch airline group struggles to stay afloat because of the coronavirus outbreak.
The French authorities said Air France would get €3bn in loans and another €4bn in state-guaranteed funds.
Meanwhile, the Dutch government said it was preparing between €2bn and €4bn in aid to KLM.
Major world airlines all but halted passenger traffic around the world.
But they still have to pay to park and maintain planes that have been grounded.
Earlier this year, Air France-KLM estimated the outbreak would cost the group between €150m and €200m in February-April.
Company Chief Executive Ben Smith warned on Friday that the government aid was "not a blank cheque" and would require tough action on costs and performance, Reuters news agency reports.
"This financing will give us the opportunity to rebuild. Faced with the upheaval the world is going through, we are going to have to rethink our model immediately," he added.
The group is the result of a merger between Air France and KLM in 2004.
With a fleet of 550 aircraft, it covers 312 destinations in 116 countries around the world. In 2018, Air France-KLM's passenger traffic exceeded 100 million.
Latest Stories
-
Man Utd ‘could make January signing’ amid Neves link
3 hours -
Yamal strikes as leaders Barcelona go 4 points clear
3 hours -
Kane scores as Bayern thrash Heidenheim to end year on high
3 hours -
Ontario Police bust international car theft ring including Ghanaian with 306 stolen vehicles recovered
3 hours -
Liverpool fear significant lower leg injury for Isak
4 hours -
Host Morocco beat stubborn Comoros in AFCON opener
4 hours -
Man Utd face up to ‘massive’ loss of injured Fernandes
4 hours -
AFCON 2025: Morocco second half brilliance seals win over Comoros in opener
4 hours -
Boankra Integrated Logistics Terminal: Tribunal orders Justmoh Construction to refund $33.3m to APSL
5 hours -
Fitch affirms Bank of Africa at ‘BB’; outlook stable
6 hours -
Fuel prices: Ghana ends year at 23rd position in Africa
6 hours -
Remain vigilant during the festivities; cybercriminals do not take holidays – CSA cautions
6 hours -
NSA to close registration portal for 2025/2026 National Service year
6 hours -
BoG Governor targets single-digit interest rates to boost businesses
7 hours -
BAWA-ROCK Ltd honoured for sustainable gold trading at Africa Development Conference
7 hours
