Fmr. Finance Minister describes massive financial support for Air France-KLM as risky

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Former Finance Minister Jeroen Dijsselbloem criticizes the plans of the Dutch and French governments to provide Air France-KLM with billions of euros in emergency aid. It is very risky to extend such large loans to companies that are already in the department, he told Buitenhof.

To keep the airlines closer, the French government has pledged € 7 billion to Air France and the Dutch government has pledged between € 2 and € 4 billion in aid to KLM in the form of guarantees and loans. Dijsselbloem thinks this is a bad idea. “KLM is suffering losses. These are now financed by debt. It is extremely risky, “he said on television.

According to Dijsselbloem, the Dutch government would do better by investing in the company’s share capital. And ideally, this would happen with the French government, to avoid further conflicts, he said.

The result of such an “internal bailout” is that investors also contribute to the losses, said Dijsselbloem, noting that around 70% of Air France-KLM was owned by private investors.

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