Airline KLM transferred 350 million euros to the Dutch State on Friday, a spokesperson confirms after reporting from RTL Z† As a result of that payment, about two thirds of the state aid that the company received to get through the corona crisis has now been repaid. There is still 277 million euros to be paid off.
At the start of the corona crisis, the State made 3.4 billion euros available in loans to guide KLM through the crisis. The airline borrowed 942 million euros in 2020 and nothing in the years after.
At the beginning of this quarter, KLM started repaying that loan and the company has already repaid 665 million euros. Currently there is still 277 million euros outstanding. KLM wants to repay that amount “as soon as possible”, but also takes into account the economic situation and a possible revival of the corona virus.
Last Tuesday, Minister Sigrid Kaag (Finance) announced that the State will buy extra shares of KLM’s parent group Air France-KLM for 220 million euros. The government is doing this after Air France-KLM decided to issue additional shares, which would dilute the current Dutch stake of 9.3 percent. In order to maintain this level, additional shares are bought.
The striking thing about this share issue is that part of the money will be used to repay aid to the Dutch and French governments. In its own words, the cabinet cannot set any requirements with regard to what can and cannot be done with the money and so in a sense it pays for itself with the share purchase.