The company will receive 2.25 billion euros and devote the entry to the capital of the French shipowner CMA CGM.
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This time, Air France-KLM decided to leave the crisis behind it! The Franco-Dutch airline announced, Tuesday, May 24, the launch of a capital increase of 2.25 billion euros. The operation will be the occasion for a revision of the Air France-KLM Table Table. France and the Netherlands, holders respectively 28.6 % and 9.3 % of the shares, should keep their position.
On the other hand, the two airlines, the American Delta Airlines (5.8 %), and the Chinese China Eastern (9.6 %), should see their participation diluted in the new set. This decrease will be made for the benefit of the new entrant, the French shipowner CMA CGM, who is committed to taking up to 9 % of the capital of Air France-KLM. He will invest in exchange up to 400 million euros and will become the third shareholder of the group.
With this fresh money, the company “will affect approximately 1.7 billion euros” to the reimbursement of the obligations taken out by the State, while “the balance will reduce net debt” of the company, which has reached 7.7 billion euros at the end of March. The operation devotes, ultimately, the pre-eminence of France in the airline and the marginalization of the Netherlands.
Consolidation of the sector
In February 2019, the Dutch government had led a hostile and surprised raid to match France’s level of participation, then stalled at 14 %. A maneuver which will have cost him dearly and which will have been completely erased by the crisis linked to the COVID-19. Now recapitalized, the company led by the Canadian Ben Smith can resume its march forward. The sudden occurrence of the pandemic, in 2020, had sealed the finances of the airline, which had accumulated losses of almost 11 billion euros.
To escape bankruptcy, Air France-KLM had to go through certain concessions, in particular to the regulatory authorities of the European Union. The company was led to abandon a number of takeoff and landing slots in Paris-Orly, an airport with the number of limited slots. Air France also had to remove certain domestic links, less than two thirty in TGV, in the name of environmental protection.
Any evil, because these destinations were strongly in deficit. More embarrassing for its smooth running, the group had committed not to take more than 10 % of the capital of another company as long as it has not reimbursed at least 75 % of the aids it has received. A real handicap at a time when consolidation of the air transport sector has started, marking the end of the crisis.
Air France, formerly a historic partner of Alitalia, would like to take part in the Table d’Ita, the new Italian company built on the rubble of Alitalia. An operation that would allow him to keep his hand on the third market in continental Europe. At the opening of the financial markets, the operation did not seem to collect the consent of investors, and the Air France-KLM action lost 5.5 %.