Here’s how France and Germany passed out to help Air France-KLM and Lufthansa

21 February 20213 years ago babelfish

All the details on the state aid granted by France and Germany for Air France-KLM and Lufthansa

Deep red for the accounts of Air France-KLM. The two air carriers, which have already received aid of up to 10.4 billion from their respective governments, are preparing to launch a new recapitalization, supported by France and the Netherlands which jointly control 14% of the group.

The only obstacle to the recapitalization could be the EU Commission, which, as in the case of Lufthansa, has placed stakes for the intervention of the German government. Let's go step by step.

THE NUMBERS OF AIR-FRANCE-KLM

Let's start with the numbers. The group closed 2020 with a net loss of 7.08 billion euros, against a profit of 290 million recorded last year. Turnover also fell by 59% to 11.09 billion. The year of Covid has “put a strain on the Air France-KLM group which has had to face the most serious crisis ever experienced by the air transport sector”, said the general manager Ben Smith.

STATE AID

Yet, the group has received important aid from the governments of the respective Air France-KLM companies to overcome the pandemic crisis: France and the Netherlands, which jointly control 14% of the group, have put up to 10.4 billion ( 7 billion from France ).

THE RECAPITALIZATION

A figure, however, which seems not to be sufficient for the company's coffers, which in the first quarter of 2021 expects to fly only 40% compared to the levels of 2019 which it expects to face with the liquidity of 9.8 billion euros that has available and a new recapitalization.

The group and the respective governments have already begun talks with Brussels, but there are fears that the Commission could put some stakes.

STATE AID TO LUFTHANSA

For example, the Commission has placed stakes on Lufthansa, which received 9 billion euros from the German government in the midst of the pandemic, in exchange for a 20% share. State aid from Brussels received the blessing, as long as, however, the company sold 24 slots at the main airports (Frankfurt and Munich) to ensure competition.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-francia-e-germania-si-sono-svenati-per-aiutare-air-france-klm-e-lufthansa/ on Sun, 21 Feb 2021 06:31:14 +0000.