9 billion euro bailout to rescue Air France, KLM

The French and Dutch governments announced at least 9 billion euros ($9.7 billion) in bailout money Friday to rescue Air France and KLM, which are fighting for survival as most of their planes are grounded by virus lockdowns around the world.

The partner airlines had been negotiating for weeks with their respective governments, as carriers worldwide are collapsing or seeking government bailouts.

Worldwide lockdowns have upended the entire industry, and Air France and KLM said earlier this month that they expect their joint traffic to be down more than 90% in the coming months.

With no clear end to the crisis in sight, Air France will get 3 billion euros in direct loans from the French state and 4 billion euros in bank loans guaranteed by the state, Air France-KLM Chief Executive Officer Benjamin Smith said in a recorded statement on Friday.

Smith stressed that in exchange for the bailout, the Group would work hard to adhere to the government's conditions of profitability and more environmentally sustainable, less polluting policies.

In the Netherlands, the finance ministry announced the government will provide between 2 and 4 billion euros ($2.16-4.32 billion) to help flag carrier KLM survive the devastating impact on its operations of the coronavirus crisis.

The bailout money for KLM would likely be in the form of guarantees and loans to the carrier.