The aid given to Air France-KLM by the French and Dutch States will allow the group "
to hold out for less than 12 months
", estimated its managing director Benjamin Smith in an interview with the newspaper l'Opinion published on Monday, referring to a "
possible recapitalization
" .
Read also: Air France activates its job elimination plan
“
If we look at the last few weeks, it is clear that the traffic rebound will be slower than expected.
When we negotiated state aid in the spring, we announced that we would not return to the 2019 level until 2024. This is why we will have to continue to adapt,
”explained Mr. Smith.
“
In the spring, KLM obtained aid of 3.4 billion euros from the Dutch state (including 2.4 billion from guarantees).
For Air France, it is 7 billion, including 4 billion guaranteed loans.
These supports allow us to last less than 12 months,
”he continued.
“
We are currently discussing with our shareholders how to strengthen our balance sheet beyond this period.
One, three or five billion euros?
It is too early to quantify the amount of a possible recapitalization
”, he added, specifying that this question would be“
decided before the next general assembly
”which is usually held during the second quarter.
As of June 30, the group had 14.2 billion in cash or lines of credit.
Its capital is held by the French and Dutch States (14.3 and 14%), the American companies Delta and Chinese China Eastern up to 8.8% each, the American investment companies Causeway capital management (6.9% ) and Donald Smith & Co (5.2%) and employees (3.7%), the rest being free float (38%) and self-checking 0.3%).
Air France-KLM management has initiated a plan to “
rebuild
” the group after the Covid-19 crisis which will involve the elimination of 7,580 positions at Air France by the end of 2022 and up to 5,000 at KLM .
Regarding the principle of an eco-contribution on air transport demanded by the Citizen's Convention, Mr. Smith considers that it “
would be irresponsible and catastrophic
” for his group.
Read also: Air France offers Covid insurance to reassure its customers
This proposal, the cost of which is estimated at 4.2 billion euros for the sector, is strongly criticized, both by all of its players and by the Minister for Transport Jean-Baptiste Djebbari.
It must be the subject of a debate within the framework of a bill discussed at the beginning of next year.
