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Roissy, November 6, 2020
Final approval of the 3.4 billion loan package by the Dutch state
KLM is in the midst of the worst crisis in its 101-year history, with the COVID-19 pandemic eroding its strong performance in recent years. The EUR 3.4 billion loan package, consisting of a government loan and bank loan guarantees, is key to securing the future of the airline and its network for the Netherlands. KLM is very grateful to the Dutch government for its support and willingness to provide funding at this time.
The Dutch government has made its loan package conditional on certain conditions, one of which is that all KLM employees must agree to adjust certain working conditions for the term of the loan (expected to run until 2025). KLM has spent the past few months working out the details of this austerity program with unions for cockpit, ground and cabin personnel, in line with the required structure and percentages.
The results of these negotiations were formalized in framework collective labor agreements and incorporated as such in the restructuring plan that KLM submitted to the Dutch government on 1 October. The framework agreements define the austerity measures that will apply until the beginning of 2022 (for cockpit crews) and the end of 2022 (for ground and cabin crews). It was particularly important to specify the contribution that all KLM employees would make to the airline’s cost-cutting efforts during the entire loan period. To meet this request without having to re-enter negotiations, a “commitment clause” has been included in the agreements between KLM and the trade unions.
KLM and the eight unions therefore fulfilled a key requirement, ensuring final approval of the $ 3.4 billion loan package by the Dutch state.
Investor relations press office
Olivier Gall
+33 1 49 89 52 59 +33 1 41 56 56 00
Website: www.airfranceklm.com
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Final approval Dutch state support VE_final
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