EU green-lights 7 billion euros in state aid for Air France

"The European Commission has approved, under EU State aid rules, a EUR 7 billion French aid measure consisting of a State guarantee on loans and a shareholder loan to Air France to provide urgent liquidity to the company in the context of the coronavirus outbreak," the commission said on Monday.

The European Union's top executive arm has green-lighted France's plans to provide 7 billion euros in urgent liquidity support to Air France in light of the coronavirus crisis, according to its official website.

Last week, Air France-KLM CEO Benjamin Smith had said that the flag carrier would receive 7 billion euros worth of relief aid, noting that 4 billion euros would be provided by banks, mostly state ones, and the other 3 billion euros would come directly from the French government, Sputnik reported.

Smith added that the company would be back to normal following the pandemic-induced global border closures no earlier than in two years.

"The European Commission has approved, under EU State aid rules, a EUR 7 billion French aid measure consisting of a State guarantee on loans and a shareholder loan to Air France to provide urgent liquidity to the company in the context of the coronavirus outbreak," the commission said on Monday.

The commission's Executive Vice-President Margrethe Vestager, in turn, stressed the importance of the aviation industry "in terms of jobs and connectivity."

The commission also noted an essential role that Air France, with a fleet of more than 300 planes, has been playing in repatriating citizens and shipping medical equipment. (Sputnik/)

( With inputs from ANI )