Air France-KLM in talks over state-backed bailout - report

(Sharecast News) - Air France-KLM is reported to be in discussions about securing a multi-billion euro bailout backed by the French and Dutch governments.
According to Reuters, which quoted anonymous sources close to discussions, Air France-KLM is holding talks with lenders about receiving loans guaranteed by the two governments. Each country has a 14% stake in the airline.

It is thought Air France could receive as much as €4bn and KLM around €2bn, Reuters said. Advisory banks BNP Paribas and Soci?t? G?n?rale declined to comment, while a spokesperson for Air France-KLM said the carrier was in "constant discussions with both governments" but provided no further detail.

The governments of both countries are understood to be keen to help the Franco-Dutch airline, but have not yet provided specifics on any bailout plans.

The airline industry has been rocked as the coronavirus pandemic closes borders and shuts airspace, leaving fleets grounded and carriers at risk of collapse.

Ryanair on Friday warned it would carry minimal "if any" traffic in the next two months, while British Airways temporarily suspended 30,000 cabin crew and ground staff as its owner, IAG, suspended the dividend. EasyJet has grounded its entire fleet, while in the US, American Airlines and Delta have both drastically reduced capacity.

On Thursday, the Geneva-based International Air Transport Association called Covid-19 the industry's "darkest hour".