The Air France-KLM Group and Air France secure funding of €7 billion to help overcome the crisis and prepare for the future...
24 Aprile 2020 - 8:26PM
The Air France-KLM Group and Air France secure funding of €7
billion to help overcome the crisis and prepare for the future
Roissy, 24 April 2020
The Air France-KLM Group and Air France
secure funding of €7 billion to help overcome the crisis and
prepare for the future
In its communication of 9 April 2020, the Air
France-KLM Group stated that, given the major impact of the
Covid-19 crisis, which will weigh heavily on its EBITDA, and
despite the significant measures taken to preserve its liquidity,
it predicted that in the absence of additional funding, a liquidity
injection would be necessary in the third quarter of 2020.
The Air France-KLM Group, Air France and KLM
therefore engaged in talks with the French and Dutch governments
regarding the implementation of specific aid measures that would
enable them to maintain their solvency.
Following several weeks of discussions with the
French state and banking institutions, the Air France-KLM Group and
Air France were able to finalize the various components of a
support mechanism dedicated to Air France on which principle
agreements are being finalised:
This support mechanism is comprised of:
- A French state-backed loan of €4 billion granted by a syndicate
of six banks to Air France-KLM and Air France. The French
state is guaranteeing this loan up to 90%, and it has a maturity of
12 months, with two consecutive one-year extension options
exercisable by Air France-KLM;
- A direct shareholder’s loan of €3 billion from the French state
to Air France-KLM with a maturity of four years, with two
consecutive one-year extension options exercisable by Air
France-KLM.
This aid mechanism, which remains subject to
approval by the European Commission, will enable the Air France-KLM
Group to provide Air France with the means necessary to meet its
obligations by continuing its transformation in order to adapt in a
sector that the global crisis will severely disrupt.
The Dutch state has also stated its intention to
support the KLM Group. Discussions to finalise the aspects and
conditions of an additional aid are ongoing.
The transformation plan, which will be finalized
in the coming months, will include economic, financial and
environmental commitments. It will notably involve a review of Air
France's activities looking to adapt them to the new market reality
brought about by the crisis, and will have to strengthen its
financial situation. This transformation will also contain an
ambitious environmental roadmap to accelerate the Group's
sustainable transition.
Once this plan has been finalised and when
better visibility on post-crisis air traffic levels becomes
available, the Air France-KLM Board of Directors will consider
increasing its equity capital subject to market conditions.
At the latest, this could occur at the latest following the Board
meeting scheduled to approve the financial statements for
2020.
In this context, the French state has indicated
its intention to examine the conditions under which it might
participate in such an operation to increase its capital.
“On behalf of the Air France-KLM Board of
Directors, I would like to thank the French state and our banking
partners for this aid, which will enable the Air France-KLM Group
to overcome this unprecedented crisis," said Anne-Marie Couderc,
Chair of the Air France-KLM Board of Directors. "It is also the
recognition of the strategic role our Group plays in the service of
France, the Netherlands and our fellow citizens. The management and
all employees of the Air France-KLM Group will undertake every
effort to prove ourselves worthy of the trust placed in us.”
"On behalf of our Group and its employees, I
would like to thank the French state and our banking partners for
their support in ensuring the future of the Air France-KLM Group,"
said Benjamin Smith, CEO of the Air France-KLM Group. "This aid,
along with the Group's action plan, will enable us to withstand
this crisis and foresee the future of Air France-KLM with ambition
and determination. We are a strong Group and we are united in face
of this crisis. I would like to once again salute the exceptional
commitment of our employees for their dedication to the
repatriation of our fellow citizens, the transport of medical
equipment, and maintaining the essential links with
territories.”
Investor
relations
Press office
Olivier
Gall
Wouter van
Beek
Morgane Le
Gall
+33 1 49 89 52 59
+33 1 49 89 52
60
+33 6 14 30 44 52
olgall@airfranceklm.com
wouter-van.beek@airfranceklm.com
Website: www.airfranceklm.com
- Press release Air France-KLM Group and Air France secure
funding of €7 billion VE
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