|Author (Corporate)||Cardiff EDC|
Assessment conducted by the European Commission on proposed measures proposed by the Netherlands aimed at supporting and recapitalising air carrier KLM, in the framework of the Temporary Framework for State Aid put in place in light of the COVID-19 (coronavirus) pandemic.
KLM is a major network airline operating in the Netherlands. It is part of the Air France-KLM group, in which the Dutch state holds a participation. It is also the country's second-largest private employer. Due to the pandemic, the air carrier suffered a significant reduction of its services, which resulted in high operating losses. As air passenger traffic slowly starts recovering, KLM does not have sufficient liquidity in order to finance the ramp up of its activities.
In April 2020 the Dutch government showed intention to support the air carrier, adding to the support provided by the French Government to Air France. As a response to the urgent liquidity needs, the national authorities later presented a 3.4 billion aid measure on loans and a subordinated State loan to KLM. Following notification to the European Commission, the plans were approved on 13 July 2020 in the framework of the Temporary Framework for State Aid.
|Subject Categories||Internal Markets, Mobility and Transport|
|Subject Tags||Air Transport, Competition Law | Policy|
|Keywords||Air Services, COVID-19 (Coronavirus), State Aid
|Countries / Regions||Netherlands|
|International Organisations||European Union [EU]|