THE HAGUE: The Dutch government approved a multi-billion-euro coronavirus bailout for struggling airline KLM after pilots agreed a five-year pay cut deal.
Finance Minister Wopke Hoekstra on Saturday dramatically suspended plans to rescue the beleaguered Dutch arm of Air France-KLM after unions refused to budge.
But after KLM announced that the pilots’ union had backed down, the government said it was now ready to sign off on the 3.4-billion-euro ($3.9-billion) state aid injection.
“Intensive consultations” between KLM and the unions led to a “positive outcome”, Hoekstra and Infrastructure Minister Cora van Nieuwenhuizen said in a letter to parliament.
“The cabinet can therefore agree to its restructuring plan and has since confirmed this to the KLM management board,” they wrote.
KLM chief executive Pieter Elbers had earlier announced the deal with the pilots’ union, hailing it as an “important step” for the airline’s survival.
“The past few days have been incredibly intensive for everyone, with great pressure on the company, negative impact on reputation and internal divisions,” he said. — AFP
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