Search archive          Sign up for our Newsletters          Aviation Jobs
Latest Aviation News  |  Industry & Technology  |  Air Transport  |  MRO & Support  |  Aircraft Interiors  |  Editorials  |  Events Calendar  |  About UsFR
 
Aviation News EU approves 7 bln euros in French state aid to Air France

EU approves 7 bln euros in French state aid to Air France

AFP
04 MAY 2020 | 333 words
EU approves 7 bln euros in French state aid to Air France
Air France

The European Commission on Monday gave the green light to 7.0 billion euros ($7.7 billion) in French state aid to national carrier Air France to cushion the economic fallout from the coronavirus pandemic.

"The European Commission has approved, under EU State aid rules, a EUR7 billion French aid measure consisting of a state guarantee on loans and a shareholder loan to Air France to provide urgent liquidity to the company in the context of the coronavirus outbreak," EU competition commissioner Margrethe Vestager said in a statement.

The EU's executive body, the bloc's competition watchdog, loosened its rules on state subsidies in mid-March to make it easier for member countries to come to the aid of companies in financial difficulty as a result of the COVID-19 pandemic.

In the case of Air France, the aid consists of 4.0 billion euros in bank loans, 90-percent guaranteed by the state, and 3.0 billion euros in direct state loans in return for which the airline has committed to improving its profitability and reducing its greenhouse gas emissions.

"France has demonstrated that all other potential means to obtain liquidity on the markets have already been explored and exhausted," the Commission said.

"In the absence of the public support, Air France would likely face the risk of bankruptcy due to the sudden erosion of its business. This would likely cause severe harm to the French economy," it said.

As a result of the imposition of travel restrictions introduced by France and by many destination countries to limit the spread of the coronavirus, Air France has suffered a significant reduction of its services, which resulted in high operating losses.

France and the Netherlands each hold about 14 percent of the Air France-KLM group.

The Dutch government, for its part, plans to give 2.0-4.0 billion euros state aid to KLM in the form of loans and guarantees.

 
Top stories
03 JUL 2020
Portugal strikes deal to nationalise TAP airline Portugal strikes deal to nationalise TAP airline
Portugal said Thursday it will nationalise TAP airline to prevent the firm collapsing after striking a deal with private shareholders.Like most carriers, the company ... Continue Reading
03 JUL 2020
Quarantines hurting Mideast aviation recovery: IATA Quarantines hurting Mideast aviation recovery: IATA
Strict quarantine measures imposed by African and Middle Eastern nations are preventing the travel industry from getting back off the ground, threatening further losses ... Continue Reading
01 JUL 2020
Mexico's Aeromexico files for bankruptcy in the US Mexico's Aeromexico files for bankruptcy in the US
Mexican carrier Aeromexico, one of Latin America's largest airlines, announced Tuesday it was filing for Chapter 11 bankruptcy in the United States, citing the ... Continue Reading
03 JUL 2020
MRO : ASL Airlines entrusts Sabena technics for the support of its ATR fleet
03 JUL 2020
MRO : Visual inspections by drone is now authorized on narrowbody aircraft in Singapore
03 JUL 2020
IAI to convert 3 new 767s to Freighters for DHL
03 JUL 2020
Pratt & Whitney to adapt its Maine facility to add PW1100G-JM MRO capabilities
03 JUL 2020
Jet Aviation cuts 200 jobs at its Basel-Mulhouse maintenance and completion center
Top stories
MRO : ASL Airlines entrusts Sabena technics for the support of its ATR fleet
MRO : Visual inspections by drone is now authorized on narrowbody aircraft in Singapore
IAI to convert 3 new 767s to Freighters for DHL
Pratt & Whitney to adapt its Maine facility to add PW1100G-JM MRO capabilities
Jet Aviation cuts 200 jobs at its Basel-Mulhouse maintenance and completion center
 
Latest News     Industry & Technology     Air Transport     MRO & Support     Aircraft Interiors     Editorials
© 2020 Le Journal de l'Aviation - All rights reserved