EC backs Air France-KLM assist, Paris to carry largest stake
07.04.2021 – 12:15 UTC
As anticipated, the European Fee has accepted a second bailout of Air France-KLM, involving EUR4 billion euros (USD4.75 billion) in refinancing that might see the French state enhance its stake within the group from 14.3% to virtually 30%.
Beneath the plan, which to date advantages solely the Air France (AF, Paris CDG) wing of the group, the French authorities will convert a EUR3 billion (USD3.56 billion) mortgage supplied final 12 months right into a perpetual hybrid bond and participate in a deliberate EUR1 billion (USD1.19 billion) share difficulty, thereby elevating its shareholding.
The measures have “the target of strengthening the group’s steadiness sheet, making ready the restoration, and repositioning it on a sustainable monetary trajectory,” the corporate stated in an announcement.
French Finance Minister Bruno Le Maire later confirmed on France Inter public radio that the transfer “will make the state Air France’s largest shareholder,” a growth he described as a “signal of dedication” to the airline and its employees.
The help “will include strings hooked up, specifically, to make sure the French state is…
Paris, Brussels set to announce new Air France bailout
30.03.2021 – 06:33 UTC
Paris and the European Fee have agreed on the circumstances and the quantity of a second tranche of economic assist to Air France (AF, Paris CDG), Les Echos and Le Monde have reported. “There’s an rising settlement, however nothing has been signed,” a consultant of the provider instructed Les Echos.
A multi-billion-euro capital injection could also be introduced within the coming days, the supply stated, including that “administration requested us to dam dates” for it within the first days of April.
On March 27, following the 2 newspapers’ reviews, French Finance Minister Bruno Le Maire confirmed to France Data radio that the federal government and the European Fee had been nearing a deal.
“The negotiation was lengthy and tough and isn’t completely completed,” he stated, including that the package deal nonetheless wanted last approval from the provider’s board of administrators and from the fee.
He declined to touch upon particular particulars, saying solely that the deal contained options “which might be required to keep up truthful competitors between Air France and different firms” and didn’t contain route or…