Air France-KLM is set to receive a $10.9 billion state package to enable it to remain afloat during the COVID-19 pandemic that has seen airline revenues dip due to the suspension of international passenger flights.
Reuters reports that Paris is ready to vouch for 90% or more of the bank loans to Air France, rather than the 70% initially offered.
Furthermore, the airline has a likelihood of drawing on a government emergency fund, thus increasing its total support.
On 1st April, Dubai’s state-owned airline, Emirates, announced that it had received a government bailout to enable it to survive the COVID-19 pandemic. The airline cut its staff salaries by between 25% and 50%.
Meanwhile, South African Airways failed to secure additional bailouts from the government, resulting in staff layoffs set to take effect on 30th April 2020.
Air France-KLM is a Franco-Dutch airline holding company with its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris.
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