Dutch government suspends KLM bailout

Dutch government suspends KLM bailout

The Dutch government will suspend its multi-billion euros Corona virus KLM, the national carrier, was killed in a clash with a pilot union over the terms of a rescue package.

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If this controversy is not resolved, it could have serious consequences for some working KLM 30,000 people. The company reported on Friday that it had lost 234 million euros ($ 273 million) in the third quarter as a result of a plane crash caused by a corona virus infection.

“Without this credit, KLM would not have had this difficult time,” CEO Peter Elbers said in a statement. “It’s very worrying about this stalemate.”

In June, KLM threw away 3.4 billion euros ($ 3.96 billion) in lifetime to help the airline sustain a sharp decline in air travel amid epidemics. The package is made up of 1 billion euros in loans and 2.4 billion euros in bank guarantees.

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But the strings are attached, including a demand to reduce KLM costs by 15%, and to improve aircraft stability.

In a letter to parliament, Finance Minister Vopke Hokstra said: “It is up to KLM and the unions to ensure that the conditions set are still met.”

Oct. However, the contracts only apply until 2022; Hookstra demands a guarantee from KLM that the unions will agree to pay the cuts throughout the bail period, probably five years.

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KLM claims that five unions have agreed to sign a “confirmation section”. It said one of the unions representing cabin and ground workers was still considering the matter and the pilot union had not signed up.

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Hookstra called the pilots’ position “very disappointing and dangerous.”

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The pilot union said its members had already agreed to a 20% pay cut and were “determined to continue to take responsibility for getting KLM through the crisis and turning it back into a healthy company.”

It said KLM had called for extra commitment at the last minute and that it “could not be reached by this deadline”.

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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