Dutch airline KLM has received final approval for a €3.4 billion loan from the Dutch government.
The airline said it was “in the midst of the worst crisis in its 101-year history, with the Covid-19 pandemic eroding its strong performance of recent years”.
The package, a combination of a government loan and guarantees on bank loans, was subject to certain conditions, one being that all KLM employees needed to agree to adjust certain employment conditions for the duration of the loan (expected to last until 2025).
KLM says it has spent the past few months hammering out the details of this austerity programme with the trade unions for cockpit, ground and cabin personnel, in line with the required structure and percentages.
The details of the restructuring plan were submitted to the Dutch Government on 1 October. Austerity measures will apply until early 2022 for cockpit crews and late 2022 for ground and cabin personnel.
The airline said: “It was especially important to specify the contribution that all KLM employees would be making towards the airline’s cost-reduction efforts over the entire loan period. To meet this demand without having to re-enter negotiations, a ‘commitment clause’ was inserted into the agreements between KLM and the trade unions. KLM and the eight trade unions have therefore satisfied a key requirement, ensuring final approval of the €3.4 billion loan package by the Dutch state.”