European Commission Approves EUR3.4 Bln Loan for KLM

The European Commission has approved a 3.4 billion-euro ($2.6 billion) state loan for KLM Royal Dutch Airlines meant to finance a ramp-up in activity following the coronavirus lockdown, it said Monday.

The loan to the Air France-KLM group airline is made up of a state guarantee on loans provided by a consortium of banks and a subordinated loan by the Dutch government.

The measures are designed to provide urgent liquidity for the Dutch airline, which has suffered high operating losses due to travel restrictions imposed by the Netherlands and other destination countries.

The European Commission said it has found that the state guarantee is in line with the broader framework to support economies in the context of the coronavirus outbreak.

KLM employs over 36,600 people.

By Jessica Sier