Roissy, November 6, 2020
Final approval of the € 3.4 billion loan envelope by the Dutch government
KLM is in the midst of the worst crisis in its 101-year history, with the COVID-19 pandemic eroding its strong performance in recent years. The € 3.4 billion envelope, made up of a public loan and guarantees on bank loans, is crucial to securing the future of the airline and its network in the Netherlands. KLM is very grateful to the Dutch government for their support and willingness to provide funding at this time.
The Dutch government made its loan offer conditional, one being that all KLM employees must agree to adjust certain terms of employment for the term of the loan (expected until 2025). KLM has spent the last few months working out the details of this austerity program with the cockpit, ground and cabin staff unions, according to the structure and the required percentages.
The results of these negotiations were formalized in framework collective labor agreements and incorporated as such into the restructuring plan that KLM submitted to the Dutch government on October 1. The framework agreements define the austerity measures that will apply until early 2022 (for cabin crew) and end 2022 (for ground and cabin personnel). It was particularly important to specify the contribution that all KLM employees would make to the airline’s cost reduction efforts over the life of the loan. To meet this demand without having to resume negotiations, a “commitment clause” has been inserted into the agreements between KLM and the unions.
KLM and the eight unions have therefore met a key requirement, securing the final approval of 3.4 billion loans by the Dutch state.
Investor relations Press service
+33 1 49 89 52 59 +33 1 41 56 56 00