Brussels approves Dutch state aid of 3,4 billion Euros to KLM

in News · 14-07-2020 15:37:00 · 1 Comments

The European Commission approved Dutch state aid to the airline KLM, urgent liquidity support in the form of a state guarantee and a public loan because of the aviation crisis created by covid-19.

“The European Commission approved, under the [temporary] rules for state aid in EU, a Dutch measure in the value of 3.4 billion Euros, which consists of a state guarantee for loans and in a state loan given to KLM to provide urgent liquidity to the enterprise in the context of the new Corona Virus outbreak”, informs the community executive in a press note.

At issue, then, is a state guarantee for loans given by a consortium of banks and also a loan given to the company by the Dutch State, totalling 3.4 billion Euros.

Headquartered in the Netherlands, KLM is the second biggest private employer of the country, with more than 36.600 employees.

Due to the covid-19 pandemic, which had heavy impacts on the aviation sector, KLM “suffered a significant reduction in its services, that resulted in high operational losses”, highlights the European Commission in the press release.


Comments:

Well, if the Dutch can afford this and if KLM is a viable business then it must be fine. TAP was practically bankrupt before the Corona Crisis.

By John Dough from Lisbon on 14-07-2020 05:38
Interactive Topics, send us your comments/opinion on this article.

Please note that The Portugal News may use selected comments in the printed edition of the newspaper.