Dutch gov't supports airline KLM with €3.4b

The Dutch government has specified its announced support to KLM, part of Franco-Dutch airline Air France-KLM, by presenting an aid package of 3.4 billion euros Friday to help it overcome the COVID-19 impacts, reported Xinhua.

"If KLM collapses, it will have a direct effect on Schiphol Airport," Finance Minister Wopke Hoekstra said at a press conference here.

"From the kiosk employee to the mechanic, it also has consequences for the attractiveness of our infrastructure and thus for jobs in all kinds of sectors and the choice of companies to settle or trade here," he said.

In April, the Dutch government had announced financial support of 2 to 4 billion euros, now the finance minister came up with the details. It consists of a guarantee for bank loans of up to 2.4 billion euros and a direct loan from the Dutch state of up to 1 billion euros.

The government also set conditions for the financial support: no dividends will be distributed to shareholders, and no bonuses will be paid. KLM will take measures for a cost reduction of 15 percent, a reduction in the number of night flights and an active contribution to sustainability.

The government has appointed a so-called state agent to supervise the use of the funds received. The support package for KLM has been formally submitted to the European Commission for approval.

"Due to COVID-19, KLM is currently in an unprecedented crisis," KLM CEO Pieter Elbers said in a press release. "The financing package is necessary to secure the long and difficult road of recovery in the coming period."

"With the financing package, KLM can continue to fulfil its important social role in economic recovery and sustainability," he said.