The European Commission has approved an aid package of €3.4 billion for KLM
The provision of assistance approved by the European Commission. The EC emphasize the importance of the airline in the sphere of employment and air travel.
The EU will provide €3.4 billion aid in loans for the airline KLM the Franco-Dutch airline Alliance Air France — KLM. A proposal of the Netherlands was approved by the European Commission on Monday, July 13.
“KLM plays a key role in the economy of the Netherlands in the field of employment and air travel. The crisis has hit particularly hard in the aviation industry. The state guarantees and the credit will provide the liquidity KLM, in which the company is urgently needs, in order to counteract the outbreak of the coronavirus,” said the Deputy head of the EC, Margrethe Vestager.
KLM is the second largest employer among private companies in the Netherlands, its staff has more than 36 thousand people, in addition, the carrier has taken an active part in the return of citizens of the country home.
Previously, IATA said that airlines will suffer losses of $184 billion due to a pandemic. Due to the suspension of flights, the revenue of the airlines will drop by half to $419 billion from last year’s level of $838 billion.
It was also reported that Lufthansa will cut 22 thousand employees because of the crisis. Last month, Lufthansa agreed with the government on the agreement in the amount of EUR 9 billion to avoid collapse.