State aids support European airlines
Italy’s newly renationalised flag carrier Alitalia is expected to resume flight operations in June. However, the future of the joint venture agreement with Delta and Air France-KLM that runs out on 21 May 2020 still hangs in the balance.
Meanwhile, the Netherlands (EUR 2 - 4 billion in loans and guarantees) and France (a EUR 4 billion state-backed loan granted by a syndicate of six banks, and a direct shareholder’s loan of EUR 3 billion from the French state) have signalised their intention to provide financial aid for KLM und Air France.
While the Lufthansa Group, which, in its own words, does not have the means to avoid bankruptcy without outside help, continues to negotiate for state aid in Germany, Austria and Belgium, the Switzerland has agreed to provide state guarantees for EUR 1.4 billion corona loans for Swiss und Edelweiss. (ah)