To help the Air France-KLM group to overcome the coronavirus crisis with the almost complete cessation of activity and planes nailed to the ground, the aid promised by the French and Dutch states could go through a guarantee on bank loans that could reach six billion euros, according to Reuters: 4 billion euros for Air France and 2 billion euros for KLM.
France and the Netherlands, which hold respectively 14.3% and 14% of the capital of Air France-KLM, have also committed to relieving the companies' cash flow. In France, this will involve the postponement of social security contributions and the assumption by the State of partial unemployment.
On paper, these 6 billion euros should both allow us to get through the crisis to cope with the lack of revenue and the maintenance of certain costs, but also allow the restart of activity when the time comes. For the resumption, the government could also decide to postpone until the end of the year certain taxes specific to air transport.
The fact remains that this loan of 6 billion euros risks seriously weakening the group's finances, which must already face a debt of 1.2 billion euros.
Three billion euros of unused tickets
Especially since revenues may be lower for several months including after the gradual start of activity, still expected to date, during the month of June. Like other airlines, Air France-KLM has offered flight delays or "credits" to its customers who had paid for reservations. According to some specialists, the value of tickets issued and unused for the coming months would exceed three billion euros. An amount that will not go into the boxes when the activity resumes.
Another question: to repay these loans, will the Air France-KLM group be obliged in the coming months to reconsider certain investments, in particular for the modernization of its fleet?
“It pays me” newsletter
The newsletter that improves your purchasing powerI'm registering
Your email address is collected by Le Parisien to allow you to receive our news and commercial offers. Find out more
Around the world, other countries also want to support their airlines. Germany is also in talks with Lufthansa for support for several billion euros. A few days ago, Sheikh Ahmed bin Saeed Al Maktoum, the prince of Dubai, announced the injection of state capital into the company Emirates, which already faces a reduction in wages by 25 to 50% by a majority of its 100,000 employees. For their part, the United States should put $ 50 billion, again in the form of guaranteed loans, to support air transport in the country or the entry of the federal state into the capital of certain companies.