The European Commission validated, on Thursday 16 February, €1.4 billion in French State aid for Air France.
This measure aims at compensating the airline for the damage suffered between 17 March and 30 June 2020 due to the coronavirus pandemic and the travel restrictions in place to limit the spread of the virus.
Air France is owned by the holding company Air France-KLM, in which the French state holds a 28.6% stake. With a fleet of over 300 planes, Air France plays a very important role in the French economy (employment, connectivity) for many regions of France, including overseas departments and regions (DOM-ROM).
The €1.4 billion in aid follows (see EUROPE 12844/4): - €7 billion liquidity support for Air France that the Commission approved on 4 May 2020; - a €4 billion measure to recapitalise the airline (approved on 6 April 2021).
The aid will be granted in several tranches and may take the form of grants, equity support or liquidity support. The Commission found that the French measure will make good the damage that is directly linked to the Covid-19 outbreak. It also found the measure to be proportionate, as the compensation does not exceed what is necessary to make good the damage. (Original version in French by Lionel Changeur)