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The French government announced, on the tongue of Economy Minister Bruno Lemerre, on Friday that the French airline “Air France” will obtain loans from banks and the state worth seven billion euros to face the crisis of the Corona virus. The French minister emphasized that the nationalization of the company is “not on the table”, but that the state seeks through these loans to “save direct and indirect jobs” in this institution.
The French airline “Air France” will benefit from loans from banks and the French state worth seven billion euros to meet Corona Virus Crisis The novelty, as announced by French Economy Minister Bruno Lemerre on Friday, and confirmed that its nationalization is not on the table.
He explained that the amounts allocated to the airline will be four billion euros of bank loans secured by ninety percent of the state, and another three billion of direct loans from the state.
The French Minister of Economy stressed that “our national company must be saved,” describing this plan as “historic.” But he stressed that the nationalization of the company “is not on the table.”
Air France is facing a difficult situation due to the suspension of its flights as part of the isolation measures imposed to combat the Covid-19 epidemic.
Lemerre said the measures announced Friday were “to save the 350,000 direct and indirect jobs associated with the company.”
“These support mechanisms, which remain subject to the approval of the European Commission, will allow the Air France-Ka Group to secure the means for Air France to fulfill its obligations while continuing its transformation, to adapt in a sector where the global crisis will make tremendous changes,” the airline said in a statement.
Bruno Lemerre confirmed that this support “is not a blank check.” “We have set conditions for Air France. Conditions are related to profitability because they are French money, so they must make an effort to be more able to make profits,” he added.
He also spoke about “environmental conditions”, stressing that “Air France must become the most environmentally friendly airline in the world.”
The French minister also indicated that a study is currently underway to grant about five billion euros of bank loans secured by the state to the French auto group Renault.
France 24 / AFP