TRKA Stock
TRKA Stock

The KLM bailout package by the Dutch government has been put on hold after the pilot rejected the wage conditions which was an unchanged wage till 2025.

KLM, which is Dutch arm of Air France AIRF.PA-KLM had been due to receive the financial assistance of 3.4 billion euros ($4.0 billion), including 1 billion euros in direct loans, to handle the damage due to current pandemic.

Hoekstra talked to the press and said that he is strongly disappointed and in this way we cannot move forward.

The pilot union reacted to the wage freeze condition and said that they had already agreed to a freeze until March 2022 and cannot change the agreement at the last moment.

KLM CEO Pieter Elbers said that without financial assistance it would not be possible for us to make it through these challenging times. He furthermore said that the airline would not be able to survive after a few months in case of no bailout package.

In a letter to parliament, Hoekstra left the door open for the bailout if all KLM employees agreed to the five-year wage freeze.

“It is up to KLM and the unions to ensure that they meet the government’s demands after all,” he said, adding that the second wave of the coronavirus pandemic had changed expectations about how soon airlines could bounce back.

Hoekstra said that if all KLM employees agree to wage freeze condition, there is still a chance to get the package. He also said that the 2nd wave of Coronavirus diminishes the expectations about the recovery of air travel. According to him, the KLM needs to have a good recruitment programme for the airline’s long-term recovery.

The unions already agreed to extend the wage freeze, till government support.

The Airline, Air France-KLM announced their quarterly results on Friday which shows a 67% drop in third-quarter revenue to 2.52 billion euros. The airline debt reached 9 billion from 3 billion euros.


Please enter your comment!
Please enter your name here