The Netherlands makes further assistance to airlines conditional on cost reductions.
KLM airlines are in danger of running out of money soon. The Dutch government has refused to continue the previously agreed funding for the rescue of the Air France-KLM airline.
Dutch Finance Minister Wopke Hoekstra announced on Twitter that he refused further assistance. The main reason is the approach of the trade union of VNV pilots, who refused to freeze their wages until 2025. According to him, the conditions for restructuring are not being met.
„It is inevitable that KLM will further reduce its costs,“Hoekstra said. KLM’s management said it would continue negotiations.
Unfortunately, I had to inform KLM and the Lower House that the restructuring plan cannot be approved. The package as it is now is not sufficient. (1/3)
– Wopke Hoekstra (@WBHoekstra) October 31, 2020
Five KLM trade unions agreed with the reduction and subsequent freezing of wages, against which there was only one: VNV associating pilots.
KLM now has no choice but to persuade pilots to back down from their demands. The news comes at a time when airlines are expected to report another large loss due to weakened demand. The Dutch carrier has so far used up 942 million euros in government loans and secured loans from banks. The entire Air France-KLM group originally received state aid of 7 billion euros, and was to be released gradually.
Pilots and in his statement they said they had already cut wages by 20% and other demands were unacceptable to them at the moment. KLM was to raise 3.4 billion euros from the entire seven-billion package.
Air France-KLM lost 1.05 billion euros (28.8 billion CZK) in the last quarter. The company also warned of further deterioration on Friday, as the growing number of new coronavirus infections is bringing further travel restrictions in many countries.
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