EU Approves $4.7 Billion in State Aid to Air France KLM

Published April 7th, 2021 - 07:30 GMT
EU Approves $4.7 Billion in State Aid to Air France KLM
It said Air France KLM will be banned from paying dividends, non-mandatory coupon payments, making share buybacks and giving out bonus payments to management until the recapitalisation is redeemed. (Shutterstock)
Highlights
The EU executive said France will have to present an exit strategy for the airline within 12 months unless it has reduced the state stake to below 25% by then, according to Reuters.

The European Commission approved on Tuesday a French proposal to grant up to 4 billion euros ($4.72 billion) to recapitalise virus-hit Air France KLM in return for giving up to 18 slots per day at Paris Orly airport to a rival carrier.

The EU executive said France will have to present an exit strategy for the airline within 12 months unless it has reduced the state stake to below 25% by then, according to Reuters.

It said Air France KLM will be banned from paying dividends, non-mandatory coupon payments, making share buybacks and giving out bonus payments to management until the recapitalisation is redeemed.


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