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KLM will receive the state-guaranteed loan from the Government. The pilots will sign the agreement!
KLM is in the middle the worst financial crisis from the airline's 101-year history. The COVID-19 pandemic has affected performance in recent years.
All eight unions sign "commitment agreement"
The state-guaranteed loan is crucial for securing the future of the airline and its network for the Netherlands. The government made the package limited by certain conditions. One of them was for all KLM employees to agree to a salary freeze for the duration of the loan.
The company has analyzed the details of this program in recent months, along with those in the unions. After negotiations, the pilots', cabin and ground staff unions decided to sign the "commitment clause". Thus, KLM will sign an agreement with the Dutch Ministry of Finance.
KLM will receive the loan from the government
The general agreements define the austerity measures that will apply until the beginning of 2022 (for pilots) and until the end of 2022 (for ground and cabin personnel).
Thus, KLM will receive the package of 3,4 billion euros, including 1 billion euros in direct loans from the government.
The last few days have been very tense for the airline. The pressure was immense during the negotiations with the unions, and the reputation of KLM-AIR FRANCE suffered.