Air France-KLM is raising 300 million euros from investors to improve the financial situation, but the Dutch and French states are not participating. This means that governments risk losing interest in the company.
The airline needs additional cash to improve its capital position. Air France-KLM has negative equity after losses in the Corona years. This can cause problems in the long run, which is why the airline wants to raise more money.
Loans are now available that can be converted into shares. In this case, the interest of existing shareholders decreases. The Dutch state currently owns 9.34 percent of the shares. This rate may decrease to 8.66 percent.
‘Investment not necessary now’
Earlier this year, Finance Minister Kaag decided to buy 220 million euros worth of new shares to protect his stake in the airline. This time, he opposed the airline’s demand for more money.
Kaag says it is no longer necessary to invest additional money in Air France-KLM in the Dutch public interest. “The Dutch State remains one of the largest shareholders in the company and the current information position and participation in the decision-making process will continue.”
The Dutch state bought a stake in Air France-KLM for the first time in 2019. At that time, 744 million euros were provided for the purchase of approximately 14 percent of the stake. Since then, the share price has dropped significantly to date. Government involvement currently amounts to around 300m euros.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
