AeroNewsX reported last Monday that Air France-KLM was close to securing a deal for further state aid. Such was dependant on negotiations between the two aforementioned parties, which have now come to a decision, French Finance Minister, Bruno Le Maire confirmed in “Le Grand Jury,” a political broadcast by RTL/LCI/Le Figaro.
The outcome of reportedly “tough” negotiations according to Le Maire, is an agreement between the French government and the European Commission on state aid for Air France. One of the terms of the agreement will see Air France reduce its presence at Paris Orly, the city’s second largest airport after Charles de Gaulle, in order to maintain a competitive environment, adhering EU competition laws.
Initially, the European Commission had asked that the airline would give up 24 slots at Paris Orly in exchange for state aid. This is similar to a Lufthansa state aid deal that saw the German group give up 24 slots at its Frankfurt and Munich hubs. Le Maire says that negotiations with the European Commission ended with the French flag carrier being asked to give up fewer slots than initially requested, although he declined to give an exact figure.
Air France is an important asset to France, Le Maire stressed, adding that the airline supports tens of thousands of jobs and is thus “strategic for our country.” As reported on Monday, the Air France-KLM Group has as of yet received nearly €10.4bn in direct loans over the course of the last year. The latest cash injection mentioned solely affects the French subsidiary.
