The Chief Executive of Air France-KLM Group, Ben Smith said that the airline group may need to start raising extra capital in the near future to bolster the company’s balance sheet. The announcement comes as airlines continue to suffer from lost revenues due to recurrent lockdowns and travel restrictions imposed in order to prevent or limit the spread of COVID-19.
At the World Aviation Festival virtual conference held on Monday, Ben Smith stated: “We do have heavy, heavy debt that is holding back our balance sheet, so this may have to get looked at again later in the year.”
Should the recapitalization materialize, it would compliment the €4 billion rescue package, which the airline just recently received from the French Government, which included the sale of shares. With the buyout, the French State came close to owning a 30 per cent stake in the airline group.
However, earlier this month, the airline already stated that this particular state aid package wouldn’t be enough and that it was just a “first step” towards improving the company’s finances. While the French finance minister, Bruno Le Maire reiterated that the French Government was willing to provide extra support to the flag carrier.
The CEO added that he was “reasonably encouraged” by the European progress in terms of the vaccination rollout and the development of digital health passes. He also mentioned that the group plans to operate at least 50 per cent of its pre-crisis offer next summer and is optimistic about a sharper rebound.
Meanwhile, the Netherlands is also expected to provide its own financial aid to the group. Talks are said to be ongoing between the European Commission and the Dutch government according to Mr Smith. Last year the two European nations came together to provide a total of €10.4 billion in direct loans and state-backed guarantees for the Air France-KLM Group, capital which was quickly used by the company towards the end of the year when travel restrictions were increased.
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://aeronewsx.com/air-france-klm-ceo-opens-door-to-further-recapitalisation/?utm_source=rss&utm_medium=rss&utm_campaign=air-france-klm-ceo-opens-door-to-further-recapitalisation
