Photo has been used for illustrative purposes.
The Dutch government announced Friday that it will throw national carrier KLM a 3.4 billion-euro ($3.81 billion) lifeline to help the airline survive the aviation slump caused by the coronavirus pandemic.
Finance Minister Wopke Hoekstra said the support package is made up of a 1 billion-euro loan and 2.4 billion euros in guarantees for bank loans.
There are strings attached to the bailout, with the government setting conditions including that KLM must cut costs by 15%, improve the airline's sustainability and reduce the number of night flights it carries out at the national airport, Schiphol, on the outskirts of Amsterdam.
Hoekstra said that the cost-cutting order means that job losses at the carrier that employs some 30,000 people are "likely unavoidable.”
KLM CEO Pieter Elbers said the package was necessary to help KLM recover from the crisis that has kept some 90% of its planes on the ground during the global pandemic. Airlines around the world are forecast to lose $84 billion this year, with revenue halved.
"This is a very important step and I express my gratitude on behalf of all KLM colleagues to the Dutch state and the banks for their confidence in our organization and our future,” he said in a statement.
The deal includes appointing a "state agent” to oversee how the package is spent and ensure KLM sticks to the conditions.
KLM is in a partnership with French carrier Air France. The French government has pledged 7 billion euros in loans and loan guarantees to the carrier.
The Dutch announcement came a day after shareholders of German carrier Lufthansa approved a 9 billion-euro ($11 billion) rescue package that will see the German government take a 20% stake, after management told them the airline was running out of money and faced years of reduced demand for air travel.
The Dutch government said that the package must be approved by the European Commission. "We hope and expect that will happen in coming days,” Hoekstra said.
From heat-resistant crops to insurance that helps nations rebuild after a disaster, efforts to adapt to growing climate risks are taking root in Africa — but the work is too slow and is now threatened by COVID-19, African leaders warned.
All passengers coming from Pakistan to Dubai on Emirates flights must carry a negative COVID-19 report from an approved laboratory issued within 96 hours of the journey.
It is sad that the COVID-19 pandemic has battered the air transport sector, landing it in huge turbulence, grounding planes, resulting in layoffs, bankruptcies and rescue plans.
Global stocks rallied on Tuesday and the dollar dipped as weak US data sparked hopes the Federal Reserve could ease its interest-rate hiking plans.
The Lord Mayor of the City of London, Vincent Keaveny, has expressed his hope to strengthen the ties between the UAE and the United Kingdom, particularly in the financial and professional services sector.
Dubai property prices continue to increase across various affordable and luxury segments as key areas record high numbers. Sales trends in the first half of the year indicate