The Netherlands' national airline, KLM, is set for a €3.4 billion bailout package should it meet certain employment, financial and sustainability targets, the Dutch government announced on Friday (26 June). It still requires regulatory approval from Brussels.
Coronavirus has hastened the demise of the Airbus A380 - the world’s largest airliner - as the aviation industry scrambles to adapt to lower demand for air travel, which has essentially made the double-decker super-jumbo a plane out of time.
The Dutch government’s proposed €2-4 billion aid package for national airline KLM was debated in parliament on Wednesday (6 May), but lawmakers are still divided over what strings - if any - to attach to the bailout.
France’s state-owned rail company has suffered losses of €2 billion because of the coronavirus outbreak and may need government aid in order to stave off job cuts. An already-agreed bailout for the aviation industry could end up boosting demand.
Air France-KLM will get a state-backed bailout of around €10 billion in loans and guarantees. But the lack of strict conditions in the aid packages announced by the French and Dutch governments on Friday (24 April) has already stoked criticism.
The European Commission will allow France to defer some aeronautical taxes up to two years in order to help embattled airlines, after Brussels decided on Tuesday (31 March) that the plan is in line with its new looser state aid rules.
Air France is to cut 1,500 jobs, mostly ground staff, by late 2022, union sources told AFP on Thursday (27 February), although the company insisted talks with labour representatives have not yet concluded.