French State’s Massive Aid to Air France-KLM during Health Crisis: How it Benefited Public Finances

2023-10-26 17:39:10

During the health crisis, the French state supported the Air France-KLM group by paying massive public aid.

A rescue of Air France profitable for the French State. The Air France-KLM group, disrupted by the health crisis, benefited from 4 billion euros in state-guaranteed loans (PGE) in 2021. Massive aid which ultimately brought 650 million euros to public finances, report Les Échos. In addition to early repayment costs, this sum also includes the guarantee premium on the EMP as well as the interest for the direct loan of 3 billion euros from the State shareholder.

To obtain authorization from the European Commission, reluctant to pay massive new public aid for competition reasons, Air France-KLM was in fact forced to accept this guarantee premium on the EMP, the cost of which increased over time. gradually, specify Les Échos. A way for Brussels to push the group to repay this public aid as quickly as possible – similar conditions were imposed on the German airline Lufthansa.

“Fully refunded”

A sum that is all the more significant for Air France-KLM as the interest paid to the banks must also be taken into account. The Franco-Dutch group announced last April that it had “fully reimbursed” the French state aid. The group was thus able to free itself from the constraints imposed by the European Commission in exchange for its commitment to public aid, such as the ban on paying dividends or the limitation of acquisitions.

Jérémy Bruno Journalist BFMTV

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