The European Commission approved France’s contribution up to 4 billion Euros to the recapitalization of Air France.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “France will contribute up to €4 billion to reinforce Air France’s equity and help the airline face financial difficulties resulting from the coronavirus outbreak. At the same time, the public support will come with strings attached, in particular to ensure the French state is sufficiently remunerated, and further measures to limit distortions of competition. In particular, Air France has committed to make available slots at the congested Paris Orly airport, where Air France hold significant market power. This gives competing carriers the chance to expand their activities at this airport, ensuring fair prices and increased choice for European consumers.”
The French State will become a shareholder in the company in proportion to the capital it contributes, but will present a plan to exit the company within 12 months, unless it reduces the stake under 25%.
Air France will also give 18 daily slots from Paris Orly Airport to rival airlines in return for the financial support.
This post was published on 6 April 2021 3:41 pm