Air France-KLM will be recapitalized by 4 billion euros

Created on 02.06.2021 10:20

Franco-Dutch Air France-KLM will be recapitalized by 4 billion euros ($ 4.7 billion) through the conversion of state loans and additional shares. According to the airline's press release, the loan of 3 billion euros which had been received last year from the French government, will be converted into perpetual hybrid bonds, Interfax-Kazakhstan writes.

In addition, Air France-KLM will issue new shares amounting to € 1 billion. The French government, having a 14.2% of the airline's shares, will be participating in the capital deepening by increasing its stake up to 30%. China Eastern Airlines also intends to acquire new shares, but will keep its stake below 10%. The Dutch government, having a 14% stake in the Air France-KLM will not participate in the airline's capital increase.

The Board of Directors of Air France-KLM, the Dutch government and the European Commission (EC) have approved a new plan. The Dutch authorities are discussing with the EC possible steps towards their capital increase. According to French Minister for Economy and Finance Bruno Le Maire, Air France would give up 18 slots at Paris Orly airport, also noting that a recovery to "normal air traffic" is expected no earlier than 2024.

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