Dutch government suspends KLM bailout

The Dutch government will suspend its multi-billion euros Corona virus KLM, the national carrier, was among those killed in a clash with a pilot union over the terms of a rescue package.

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If this controversy is not resolved, it could have serious consequences for some working KLM 30,000 people. The company reported on Friday that it had lost 234 million euros ($ 273 million) in the third quarter as a result of a plane crash caused by a corona virus infection.

“Without this credit, KLM would not have had this difficult time,” CEO Peter Elbers said in a statement. “It’s very worrying about this stalemate.”

KLM threw in 3.4 billion euros (96 3.96 billion) in June to help the airline sustain a sharp decline in air travel amid epidemics. The package is made up of 1 billion euros in loans and 2. 2.4 billion in bank guarantees.

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But the strings are attached, including a demand to reduce KLM costs by 15%, and to improve the stability of the aircraft.

In a letter to parliament, Finance Minister Vopke Hogstra said: “It is up to KLM and the unions to ensure that the conditions set are still met.”

KLM submitted a restructuring plan to the Dutch government on Oct. However, the contracts only apply until 2022; Hookstra demands a guarantee from KLM that the unions will agree to pay the cuts throughout the bail period, probably five years.

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KLM claims that five unions have agreed to sign a “confirmation section”. It said one of the unions representing cabin and ground workers was still considering the matter and the pilot union had not signed up.

Hookstra called the pilots’ position “very disappointing and dangerous.”

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The pilot union said its members had already agreed to a 20% pay cut.

It said KLM had called for further reassurance at the last minute and that it “could not be reached by this deadline”.