KLM does not comply with conditions attached to the state aid it received during the corona crisis, according to the state agent. The company is already paying out profit shares, is still giving tax benefits to staff abroad and pilots have paid too little salary. That’s what the government inspector says.
According to this state agent, KLM would not be able to withstand another crisis. To still enforce compliance with the conditions, the cabinet can go to court. The government can also demand compensation in this way.
When the pandemic broke out more than three years ago, aviation came to a standstill. KLM also shared in that malaise. To keep the company afloat, the state provided a loan of 1 billion euros. In addition, 2.4 billion euros in extra loans were made available, in case they were needed.
The government then attached various conditions to this support. For example, staff had to agree to a lower income, with the broadest shoulders bearing the heaviest burden. Also, no bonuses were temporarily allowed to be paid. All in all, the airline had to reduce costs by 15 percent.
Cabinet can enforce compliance
That has not happened enough, says state agent Jeroen Kremers. Costs have not been reduced far enough, profit shares will be distributed again in 2022 and pilots and other higher-paid cabin crew have lost their salary.
The state inspector advises the cabinet to enforce compliance, if necessary through the courts. The government, as a shareholder of KLM, can also, for example, withdraw confidence in the board.
Whether it actually comes to a lawsuit remains to be seen. Responsible Minister of Finance Sigrid Kaag says the outcome of a lawsuit is uncertain. She therefore doubts whether she should take that step. Which steps Kaag does take, she will determine at a later time.
KLM is not aware of any harm. In any case, the company has been arguing with the state agent for some time and the airline is also now critical of his vision.
The company says it has indeed achieved the 15 percent savings, employees have handed in enough salary, KLM achieved positive results over last year and the state aid has now been repaid. The airline therefore says it is surprised at Kremers’ findings and accuses him of mixing facts with opinions.
The House of Representatives will discuss the issue on Thursday.
2023-05-31 15:09:47
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