The Strategist

Dutch authorities agree to reduce their shareholding in Air France-KLM

04/07/2021 - 04:50

The Dutch government has agreed to reduce its stake in Air France-KLM in line with a deal between the company and the French government, according to a letter from Acting Dutch Finance Minister Wopke Hoekstra to parliament.

Aleksander Markin via flickr
Aleksander Markin via flickr
In his letter, Hoekstra said that the Dutch government had agreed to reduce its stake in AF-KLM from 14% to 9.3%. According to the minister, the Netherlands will nevertheless remain "a major shareholder and important stakeholder".

Dutch company KLM said on Tuesday that it would eventually need additional capital, without specifying how much. Meanwhile, the acting Dutch finance minister assured that KLM does not have an urgent need for cash, but that the government is considering a recapitalisation.

Earlier, Economy and Finance Minister Bruno Le Maire announced that France would provide up to €4 billion in financial support for Air France. According to him, the airline's €3 billion in long-term public aid will be converted into equity. In addition, France will increase its shareholding in Air France by up to €1 billion to 30 percent.

Last summer, the Air France-KLM group announced more than 7,500 job cuts by the end of 2022 amid a crisis linked to the coronavirus pandemic.