Daily Management Review

Air France to receive €7B EU aid


The European Commission approved France's government support for Air France in the amount of €7 billion in connection with the COVID-19 epidemic.

Mathieu Marquer
Mathieu Marquer
"The European Commission, within the framework of the EU rules on state aid, approved the provision of assistance in the amount of €7 billion euros to Air France. The funds will consist of state guarantees for loans and equity loans in order to urgently provide the company with liquid funds in the context of the coronavirus epidemic," the EC message reads.

This measure was approved in accordance with EU State aid rules adopted by the EU Executive Board on March 19 and valid until the end of the year. They soften the rules of competition and state support for business existing in the EU.

"We work closely with France, as well as with many other Member States (EU) so that they can provide state support in order to overcome the current crisis as soon as possible, more efficiently and in accordance with EU rules," EC Executive Vice President Margrethe Vestager said.

Air France is a large network airline operating in France. It is part of the Air France - KLM group, in which the French state is involved. With a fleet of more than 300 aircraft, Air France is a very important company for the French economy in terms of employment and connections with many French regions, including overseas. From the very beginning of the coronavirus outbreak, Air France played an important role in the repatriation of citizens and the transport of medical equipment, the EC message notes.

source: bbc.com