KLM will pay off the last part of the loan that the company received in 2020 to survive the corona crisis. The then Minister of Finance, Hoekstra, promised KLM 3.4 billion euros, but in return the airline had to cut costs by cutting personnel numbers significantly. A total of 942 million euros was borrowed.
KLM repaid the loan in three steps: EUR 311 million in May, EUR 354 million at the beginning of June and now with the remaining EUR 277 million, the entire loan has been paid off to the government. In order to cut costs, among other things, 6,000 KLM employees have lost their jobs. A large part of the staff opted for a voluntary severance package.
Another condition for the state aid was to reduce CO2 emissions and limit nuisance, such as fewer night flights.
Groningen Airport Eelde
At the start of the corona crisis, air traffic in the Netherlands came to a complete standstill. KLM aircraft that proved useless for a longer period of time were, among other things, parked on a runwayand at Groningen Airport Eelde.
The government had deployed a so-called state agent to monitor whether KLM adhered to the agreements for the support. That state agent tapped the company several times on the fingers, including whether KLM is doing enough to remain financially healthy. KLM was also criticized for tax avoidance by pilots living abroad. KLM has also stated several times that it does not agree with the criticism.
Last workingday
The news about the repayment comes on the last working day of KLM director Pieter Elbers. His position will be taken over from tomorrow by Marjan Rintel, who previously headed the Dutch Railways. Elbers becomes CEO of a budget airline in india†