Government offers financial support to KLM as a result of the corona crisis

The Dutch government supports KLM for an amount of 3.4 billion euros. The support consists of a guarantee for bank loans of up to 2.4 billion euros and a direct loan from the Dutch state of up to 1 billion euros. It has also been agreed with Air France-KLM that the unilateral notice period for termination of the so-called state guarantees, which safeguard Schiphol's hub function, will be extended from nine months to five years. As the largest user of Schiphol, KLM is crucial for the airport. With the extension of the notice period for termination, there is more certainty for KLM and Schiphol and therefore the public interest of the Netherlands.

The government has set conditions for the financial support, such as a cost reduction by KLM of fifteen percent, a reduction in the number of night flights and an active contribution to sustainability. To ensure that the implementation of the agreements made is monitored, the government has appointed a so-called state agent to supervise the use of the funds received. The support package for KLM has been formally submitted to the European Commission for approval.

Ministers Hoekstra (Finance) and Van Nieuwenhuizen (Infrastructure and Water Management) informed the House of Representatives on this today. The government provides this support because of the importance of KLM for the international network at Schiphol. This makes an important contribution to the Dutch economy and employment.


The government has imposed conditions on KLM for the financial support. For example, employees who earn more than three times the average wage are asked to take a pay cut of at least twenty percent, so that the broadest shoulders bear the greatest burden. Employees who earn less are asked to take a pay cut of a lower percentage.

During the term of the financial support, no dividends will be distributed to shareholders, no bonuses will be paid and the number of night flights will be reduced from 32,000 to 25,000. KLM is committed to reducing the CO2 emissions of Dutch aviation by 50 percent per passenger kilometer in 2030.

In addition, the government considers it necessary that the parent company Air France-KLM and both subsidiaries KLM and Air France take measures to reduce costs by restructuring.

Guarantee and direct loan

The loans are financed by the market as much as possible. The state guarantees a maximum of ninety percent of the amount to be borrowed by KLM, which is financed by 11 Dutch and international banks.

The direct loan by the Dutch state runs until the end of 2025 and will be provided in tranches. The tranches depend on the progress of the fulfilment of the conditions. A next tranche of the loan will only be made available after the conditions have been fulfilled to the satisfaction of the Dutch state.

In the past period, intensive discussions have been held with Air France-KLM, KLM and the French state about the financial support and the future of the enterprise. Although much progress has been made, there is still a lot of work to be done to ensure that Air France and KLM remain key players in what is a highly competitive international aviation market.