Dutch €3.4B aid for KLM gets green light by EC
The European Commission has approved the Dutch government's €3.4 billion aid package for KLM Royal Dutch Airlines.
The Netherlands has received the green light by European regulators to issue a state aid package for the country’s national carrier. The measure would provide KLM with urgent liquidity to weather the negative consequences of the coronavirus outbreak, the European Commission (EC) announced on July 13, 2020.
The aid package consists of two loans: one of €2.4 billion granted by eleven banks 90% guaranteed by the Dutch state and a second direct loan from the state to KLM for €1 billion.
They would come with certain strings attached, such as conditions regarding profit allocation, working conditions and sustainability, according to Executive Vice-President Margrethe Vestager.
The aid is still to be approved by the Dutch Parliament.
The exact date on when the €3.4 billion would reach KLM is unknown. However, the EC outlined it would have to be before the end of 2020.
KLM employs over 36,600 people and is the Netherlands' second-largest private employer.
The Dutch state aid package comes following the French government’s €7 billion aid package for Air France, bringing the group’s loans to €10 billion.
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