‘Air France-KLM is going to issue new shares’

Airline company Air France-KLM is going to issue new shares, reports Reuters news agency. According to the British news agency, tomorrow the company is going to announce that it intends to convert part of its government loans into loans that can be exchanged for shares. The company also plans to spend more shares in order to raise extra money.

Yesterday it became clear that France has reached an agreement with the European Commission on a new round of State aid for Air France. According to Minister Le Maire of Finance, concessions have been made, but not the entire package demanded by Brussels.

Among other things, the Committee wanted Air France to abandon take-off and landing rights at Paris Orly airport. That will happen, says Le Maire, but it will not be the 24 that Brussels initially demanded.

No agreement yet on aid for KLM

The Netherlands is still in talks with the European Commission about additional support for the airline company. According to the Ministry, this is in case KLM also needs support.

โ€œ As we know, KLMs acute distress is less high,โ€ says a spokesman for the Ministry of Finance. Among other things, Brussels demands that KLM return flight rights at Schiphol Airport.

The Ministry calls it a good thing that there is an agreement between France and Brussels in sight. โ€œThis will allow another step to be taken on the path to keeping air carriers healthy within Air France-KLM.โ€

Last year, Air-France KLM received a total of more than EUR 10.4 billion in support from the Dutch and French State, in the form of loans and guarantees. Both countries hold about 14 percent of the shares in the airline company. In February it became clear that last year the company suffered a loss of 7.1 billion euros.