The European Commission has approved a support package from the Dutch state to the airline KLM of 3.4 billion euros.

One billion euros will be lent directly to the airline, which is part of the Air France-KLM group. On top of that, the Netherlands will provide loan guarantees of 2.4 billion euros to KLM, which, like the rest of the aviation industry, has been hit hard financially by border controls, restrictions and reduced travel in the wake of the corona pandemic.

Air France-KLM shares rose 1.7 percent on the Paris Stock Exchange after the announcement.

The Netherlands' support is conditional on wage and cost cuts, frozen bonus programs and dividends, and stricter environmental requirements, nailed down by the Dutch parliament.

The French government has previously announced a support package for the French part of the group, Air France, of 7 billion euros.

Source: TT