27 Jul
2020

Press release - AFKLM shareholder urges adjustment of government terms

In a request to the Board of Directors of Air France-KLM, a 2.51% shareholder insists on the renegotiation of the government conditions associated with the financial support package for KLM. The shareholder notes that the conditions will not be met and that the necessary liquidity, and thus KLM's continuity, may be jeopardized.

 

On 25 June 2020, the Air France-KLM Group Board of Directors approved a financial support package backed by the Dutch State for KLM of €3.4 billion. This loan of €3.4 billion comes under a number of conditions. Complying with these conditions is necessary to make use of the loan. One of the conditions concerns a precisely prescribed reduction in working conditions. However, KLM will not be able to meet this condition. The condition is contrary to international labor law, according to the response of highly regarded lawyers. In addition, all trade unions involved have indicated that this specific condition cannot be realized. Finally, the shareholder reminds the Board that imposing such a dictation on employees violates the internal principles on which negotiations with personnel take place within Air France-KLM: "trust, respect, transparency & confidentiality".

 

Shareholder ‘SPAAK’ finds that failure to meet the stated condition jeopardizes the availability of the loan, and thus potentially the continuity of the best-performing branch of Air France-KLM. She asked the Board for an explanation and called for the renegotiation of this condition.

 

Shareholder SPAAK has owned AFKLM shares since 2016, currently in a volume of 2.51%.