This archive report was first published on 27 June 2020.
On June 27, 2020, the Dutch government announced a $3.8 billion bailout package for Royal Dutch Airlines (KLM), a subsidiary of Air France-KLM, to aid in its recovery from the drastic fall in revenues due to the global COVID-19 pandemic.
The package consists of a $2.7 billion, five-year revolving credit facility from 11 banks, with 90% guaranteed by the Dutch government, and a $1.1 billion direct loan from the government, repayable by the end of 2026.
As part of the deal, KLM will suspend dividend payments and undergo painful reforms, including pay and spending cuts, a freeze on bonuses and dividends, and ambitious environmental targets.
The package is subject to approval by both the Dutch Parliament and the European Commission.
Air France-KLM, a Franco-Dutch airline holding company, has its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris. Both France and the Netherlands are shareholders of Air France-KLM, Europe's second-biggest airline group after Lufthansa.
