play_arrow

keyboard_arrow_right

skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
chevron_left
  • cover play_arrow

    Rother Radio (128k) Love Local, Love Music!

  • cover play_arrow

    Rother Radio (64K) Love Local, Love Music!

  • cover play_arrow

    Hit Music Radio (128K) More Music Variety!

  • cover play_arrow

    Hit Music Radio (64K) The Best Variety of Hits!

Business News

EU approves bailout for Air France despite competition concerns

today06/04/2021

Background
share close

The European Union has approved a massive bailout for Air France, despite concerns this could give the carrier an unfair advantage over competitors.

France will contribute up to €4bn (£3.4bn) to a recapitalisation of Air France-KLM and more than double its stake in the airline group to almost 30%.

The aid package comes as the airline, like many around the world, struggles with the effects of the COVID pandemic.

It was welcomed as “good news” by French Finance Minister Bruno Le Maire, but European Commission Vice President Margrethe Vestager warned it would come “with strings attached”.

In return for the funding, Air France will relinquish 18 take-off and landing slots at Paris-Orly airport (about 4% of its allocation there).

But the reallocation of the slots will be restricted to aircraft based at Orly with crews employed on local contracts, a move that would freeze out many low-cost competitors.

Mr Le Maire had described the slot allocation restrictions as “one of the sticking points” in talks with Brussels.

More from Covid-19

Air France-KLM chief executive Benjamin Smith said this would shield Air France’s budget carrier Transavia from unfair competition.

Mr Smith said: “These first recapitalization measures are an important milestone for our group in this exceptionally challenging period.

“They will provide Air France-KLM with greater stability to move forward when recovery starts, as large-scale vaccination progresses around the world and borders reopen.”

The group expects an operating loss of about €1.3bn (£1.1bn) for the first quarter of 2021.

Air France-KLM received €10.4bn (£8.9bn) in government-backed loans last year.

Please use Chrome browser for a more accessible video player

EasyJet boss eyes strong summer if measures allow

EasyJet chief executive Johan Lundgren said he was “concerned about the scale of these bailouts”.

He told Sky’s Ian King Live programme: “I’m not against aid as such, because to some extent this (the pandemic) has gone way beyond what you can expect the industry to deal with.

“I think it’s the scale and the billions and billions being pumped into some of the legacy airlines out there.

“If that money and funds are not there purely to survive but actually to grow market share and take advantages and for investment that they otherwise couldn’t afford, that’s not fair and that distorts the level playing field and we can be very mindful to make the competition authorities aware of that.”

 Sky News

© Sky News 2021

Written by: Rother Radio News


Previous post

UK News

Unite boss McCluskey faces calls for inquiry over £98m spend on hotel and conference centre

The UK's largest trade union is under growing pressure to commission an independent review into the spending of almost £100m of members' money on building a hotel and conference centre.Len McCluskey, general secretary of Unite, is also facing questions as to why the development's main construction contract was awarded to a company owned by a friend. The project in Birmingham, which includes new union offices, was intended to save on […]

today06/04/2021


Search Rother Radio

About Us

Rother Radio – Love Local, Love Music! → Discover more