European Commission - Press release
Commission approves €10.4 billion Dutch and French aid measures to
provide liquidity support to the Air France-KLM Group during the
coronavirus pandemic
Brussels, 10 July 2024
The European Commission has approved, under EU State aid rules, Dutch and French support
measures of €10.4 billion in favour of the Air France-KLM Group. The two measures were initially
approved on 4 May 2020 and on 13 July 2020 by the Commission under the State aid COVID
Temporary Framework, but these Commission decisions were subsequently annulled by the General
Court on 20 December 2023 and 7 February 2024.
Air France-KLM Group means the Air France-KLM Holding including its subsidiaries, in particular KLM
and its subsidiaries and Air France and its subsidiaries.
The Commission's investigation
The French aid measure consisted in a guarantee on bank loans of €4 billion and a loan of €3 billion.
The Dutch aid measure consisted in a guarantee on bank loans of €2.4 billion and a loan of €1 billion.
On 4 May 2020 and on 13 July 2020, the Commission approved these two measures notified by
France and the Netherlands respectively. The Commission found the measures to be compatible with
EU State aid rules, in particular with Article 107(3)(b) of the Treaty on the Functioning of the
European Union and the conditions set out in the COVID Temporary Framework.
On 20 December 2023 and 7 February 2024, the General Court annulled the two Commission's
decisions. In its judgements, the General Court considered that the Commission erred in considering
Air France and KLM to be the sole beneficiaries of respectively the French and Dutch State aid
measures. The Commission has appealed both General Court judgments.
In the present decision, the Commission has re-assessed the measures with the Air France-KLM
Group as the beneficiary of both the French and Dutch measures and come to the conclusion that
they would also be compatible with the COVID Temporary Framework or directly with the Treaty.
With respect to the French State loan, the Commission found that it was in line with the principles
set out in the EU Treaty, applying the COVID Temporary Framework by analogy, as it is well targeted
to remedy a serious disturbance in the economy. In this way, the Commission found that this
measure was in line with Article 107(3)(b) TFEU, in particular as (i) the remuneration was
appropriate for a subordinated loan instrument, increasing over time to encourage early
reimbursement; (ii) the loan was granted before 31 December 2020, (iii) the amount of the loan was
below two thirds of the Air France-KLM Group wage bill; (iv) the maximum duration of the loan was 6
years; and (v) Air France-KLM Group was not in difficulty on or before 31 December 2019.
With respect to the French State guarantee, the Commission's assessment concluded that this
measure was in line with the conditions of the Temporary Framework, in particular: (i) the guarantee
premium was in line with conditions under the Temporary Framework, increasing over time to
encourage early reimbursement; (ii) the guarantee was granted before 31 December 2020; (iii) the
loan backed by the guarantee was below the limits of the Temporary Framework; (iv) the maximum
duration of the guarantee was 6 years and did not cover more than 90% of the underlying loans; and
(v) the Air France-KLM Group was not in difficulty on or before 31 December 2019.
With respect to the Dutch State guarantee, the Commission's assessment concluded that this
measure was in line with the conditions of the Temporary Framework, in particular: (i) the guarantee
premium was in line with conditions under the Temporary Framework, increasing over time to
encourage early reimbursement; (ii) the guarantee was granted before 31 December 2020; (iii) the
loan backed by the guarantee was below the limits of the Temporary Framework; (iv) the maximum
duration of the guarantee was 6 years and did not cover more than 90% of the underlying loans; and
(v) Air France-KLM Group was not in difficulty on or before 31 December 2019.
With respect to the Dutch State loan, the Commission found that this measure was in line with the