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Europe’s air giants are falling one by one

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Europe's air giants are falling one by one

Europe's air giants are falling one by oneEurope’s air giants are falling one by one

The International Air Transport Association (IATA) has warned that many airlines may not survive the second quarter due to the liquidity crisis caused by the coronavirus pandemic.

As a result, the largest airlines on the continent are seeking state support in order to survive the coronavirus.
The representatives of Air France KLM and the French Ministry of Finance did not wish to comment on the information.
Negotiations for obtaining bank loans for the next 12 to 18 months take longer than expected, Les Echos said, adding that neither Air France KLM nor the banks are satisfied with the 75% guarantee level provided by France, compared to 90% in the case of the Netherlands.
Earlier, several sources told Reuters that Air France KLM is negotiating with banks to obtain state-guaranteed loans of up to six billion euros ($ 6.5 billion).
Other sources reported that the French and Dutch states, which each own 14% of Air France-KLM shares, have decided to put an end to governance disputes and join forces to deal with the liquidity crisis facing the company.

Europe’s air giants are falling – Germany could inject billions of euros into Lufthansa

German government talks to give Lufthansa airline state aid worth several billion euros and could take over a stake in the airline, which has immobilized 90% of its fleet due to the coronavirus pandemic, for Reuters, sources close to this file.
Berlin authorities and the airline are discussing a possible loan as well as a possible capital investment, given that Lufthansa plans to send more than 60% of partially unemployed employees to cope with the drastic drop in air traffic, sources said. Reuters. They added that Lufthansa is working with a number of banks, including Deutsche Bank and Goldman Sachs, in its talks with the German government.
Last week, Lufthansa reported that he has not yet applied for state aid, but is in talks with banks and authorities about what kind of aid he might need.
The American Airlines airline sent a memo to employees on Monday informing them that they intend to seek assistance of up to $ 12 billion from the US government. An investment banker has estimated that Lufthansa may need similar support from the German state.
As the planes cannot fly due to travel restrictions, due to the collapse of the demand caused by the widespread coronavirus issue, airlines around the world have announced that they need the support of governments to survive.

Europe’s air giants are falling – Austrian Airlines, state aid up to 800 million euros

 

And Austrian Airlines (AUA) is in talks with the government on state aid to save jobs and keep Vienna as a transfer hub for long-haul flights, the Austrian airline announced, adding that talks are in the preliminary stage and it could take weeks, Reuters reports.
Austrian Airlines, a subsidiary of the German group Lufthansa, has indicated that redundancies may occur. Lufthansa, which shut down the low-cost Germanwings operator, has reduced the number of flights and work schedules in an attempt to deal with a health crisis that has forced governments to impose drastic travel restrictions.
How many of the 7,000 employees will lose their jobs will depend on state aid and the speed with which the airline industry will be able to restart, AUA spokesman said.
He did not want to comment on media speculation about a rescue package of between 500 and 800 million euros. Austria’s finance minister announced a € 38 billion package to support the economy, he said, adding that Austrian Airlines could use the available tools.
Both sides want to keep Vienna as a transfer hub for long-haul flights, so it is understandable that the state will provide money in exchange for keeping jobs, sources told Reuters who wanted to remain anonymous.
Recently, the International Air Transport Association (IATA) warned that many airlines may not survive the second quarter due to the liquidity crisis caused by the coronavirus pandemic. According to the latest estimates, airlines around the world are expected to record net losses of $ 39 billion in the second quarter of this year.
The Dutch government has announced that it will take over a stake in Air France-KLM equal to that held by the French Executive, in order to increase its influence over the operations of the airline operator.
The investment comes after the Dutch government and the French-dominated Air France-KLM Board had long discussions about reducing Dutch influence.
Last year, Air France posted operating gains of 266 million euros, compared to 1.07 billion euros in the subsidiary KLM.
Air France KLM shares registered a decrease of almost 40% last year, mainly due to the wave of strikes triggered by the unions that want to get wage increases and better working conditions.
Last year, Air France posted operating gains of 266 million euros, compared to 1.07 billion euros in the subsidiary KLM. However, in 2018, the shares of Air France – KLM registered a decrease of almost 40%, mainly as a result of the wave of strikes triggered by the unions that want to obtain wage increases and better working conditions.
AccorHotels, Europe’s largest hotel group, confirmed on Monday that it intends to take a minority stake in the French-Dutch airline Air France KLM, to better compete with holiday packages offered by online rivals such as Expedia and Booking.com
Air France KLM management failed to implement a cost reduction and labor reform program, as rivals British Airways and Lufthansa did – to better compete with low-cost airline operators Ryanair and easyJet.
Air France-KLM, the second largest air carrier in Europe, owns 17.6% of the French state and in recent years its activity has been affected by numerous strikes and labor conflicts.
KLM provides its customers with information on booking confirmation, check-in notifications, boarding, flight status updates and answers questions in 10 different languages ​​directly on WhatsApp, through the official WhatsApp Business application, as part of a pilot program, the company announced.
KLM has over 25 million fans and followers on various social platforms. Through these channels, KLM receives over 100,000 mentions each week, of which 15,000 are questions or remarks. More than 250 agents respond personally to them.
On WhatsApp, Facebook, Messenger, Twitter, LinkedIn, WeChat and KakaoTalk, KLM offers responses to its customers 24/7 in 9 different languages: Dutch, English, German, Spanish, Portuguese, French, Chinese, Japanese and Korean. During program hours, KLM also offers services in Italian.
KLM was the first airline in the world to offer its customers the option of receiving flight documents and updates through Messenger, Twitter and WeChat.
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