Railway Conditional 7 Billion Euro Recovery Loan to Air France

air francea railway condition billion euro bailout loan
air francea railway condition billion euro bailout loan

The French government stipulated a "rail" alternative to the 7 billion-euro bailout loan to Air France. Accordingly, if the travelers have a train alternative, the airline is asked to reduce their flights on that line.


The world's largest airline companies lost both passenger and cash because of the new type of coronavirus (Covid-19) epidemic. For this reason, the states started to open their pouches so that the companies would not sink.

According to the news in Haber.aero; “Recovery packages started to be discussed. For the credit support to be given to the German Lufthansa, 25,1 percent of them are asked to go to the state administration. One of the conditional loan proposals was presented to the French Air France.

Air France was asked to make concessions to overcome the Covid-19 crisis. As a condition of the 7 billion euro state aid provided by France, if the passengers have a "rail" alternative, they will have to reduce their short-distance routes to the connecting lines.

The French government provided financial support to its national carrier for a total of 7 billion euros from six state-guaranteed banks. According to French Economy Minister Bruno Le Maire, the nationalization of Air France is not on the agenda for now.

"If there is a rail alternative to domestic flights, which takes less than 2 hours and 30 minutes, these flights will have to be drastically reduced and explicitly limited to transfer to a center," French Minister Bruno Le Maire said.

What are the other conditions?

In addition, Air France will have to meet its environmental commitments. In other words, carbon dioxide (CO2) emissions per passenger will have to be reduced by 2030 percent in 2005 data by 50.

Another requirement offered to the French airline is the renewal of its fleet with Airbus primarily more efficient aircraft. Fleet change is stated to reduce fuel consumption by 20 percent.

Total 9 Billion Euro Credits to the Group

Lastly, an agreement was reached on the 9 billion euro aid package for the Air France / KLM group. 7 billion euros of this loan package was planned to be used by Air France and 2 billion euros by KLM. The support package for KLM will be provided by the Netherlands.


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