The Dutch government announced yesterday that it has secured a 12.68 per cent stake in Air France KLM to bring itself to a ‘similar position’ in the airline to the French government.
The purchase puts the Dutch government’s total stake in the group at 18.58 per cent. France owns 14.3 per cent.
Announcing the acquisition, the government said increasing its share would enable it to “exercise direct influence over future developments”.
Dutch finance minister Wopke Hoekstra said “direct involvement” is necessary to ensure the “public interests of the Netherlands are better secured in future decision-making”.
The Dutch government says it has become apparent that “significant decisions” about the strategy of Air France KLM are being taken at the level of the holding company.
The news comes after the group announced last week that it would 'improve governance and simplify its structure', with KLM CEO Pieter Elbers due to stay on. He and Air France chief executive Anne Rigail have been appointed deputy CEOs of Air France KLM.
Hoekstra said: “In addition, with the shareholding at holding company level, the Dutch government wants to show that it believes in cooperation between Air France and KLM and in a strategic partnership with France with regard to this airline.”
He also commented that Dutch public interests will be protected with the government holding sway over decisions relating to the network of destinations operated from Schiphol airport. “This means that Air France KLM should be able to focus on the future in which it will have to face strong competition from other airlines. The company will have to become more competitive in order to do this. That is in the interest of KLM and Schiphol and therefore in the public interest of the Netherlands. As a shareholder in Air France KLM and KLM, the Dutch state is on top of it.”
The news surprised the French government, with finance and economy minister Bruno Le Maire saying neither the Air France KLM board nor the French state had been consulted. He said the airline should be “managed without national public interference”.
Shares in the group fell by 11 per cent on Wednesday following the announcement.