Air France and KLM are landing their fleets on coronaviruses



1XBET: 100% Welcome Bonus.
CLICK ON THE BANNER TO REGISTER And CLAIM BONUS INSTANTLY


Air France and KLM are landing their fleets on coronaviruses



AIRCRAFT Air France and KLM are being forced to take drastic action on coronaviruses.

Faced with increasing restrictions on travel options and a sharp decline in demand that has resulted in a decline in traffic and sales in recent weeks, the Air France-KLM Group has been forced to gradually reduce its number of flights significantly over the next few days. The number of flights available is reduced from 70 to 90% and austerity measures are being introduced, the Group said.



“The Group has already taken a number of strong measures to secure its cash flow. At the same time, they welcome the statements made by the French and Dutch governments, which have indicated that they are studying all possible means of supporting the Group.

The COVID-19 crisis has continued to spread in recent days, which is why many countries have taken increasingly stringent measures in an attempt to slow the rate of spread of the pandemic. Some countries have set restrictions on the movement of passengers from France, the Netherlands and beyond from Europe.

In France, as of last weekend, due to the transition to Level 3 of the public health emergency, all services that are not essential to maintaining the functioning of the system are being discontinued. This capacity reduction should currently take two months and the Group will continue to monitor the situation on a daily basis and adjust if necessary. As a result of capacity reductions, Air France will land the entire Airbus 380 fleet and KLM the entire Boeing 747 fleet. To address these situations, the Group has already taken a number of strong measures to secure its cash flow:

• additional austerity measures have been identified which will bring in € 200 million in 2020

• an initial review of the investment plan reduced the capital expenditure plan by EUR 350 million, which will be added to the impact of the downturn on the amount of maintenance investments

• Air France and KLM will consult with their elected workers' representatives on measures to take into account the impact of the expected decline in activity, including the partial activity implementation project

• Last week, Air France-KLM Group withdrew a revolving credit facility totaling € 1.1 billion, and KLM withdrew a revolving credit facility totaling € 665 million.

As of March 12, the Group and its subsidiaries had more than € 6 billion in cash and cash equivalents. Despite the measures taken, the worsening situation of the pandemic and the sharp decline in activity, the Group predicts that there has been a dramatically worse financial trajectory compared to the outlook presented in the release of the annual results.

The Group estimates that the decline in passenger operating revenues resulting from capacity reductions will only be offset by about 50% of the fall in variable costs prior to cost savings measures. In this extremely difficult context, the Air France-KLM Group welcomed statements by the French and Dutch governments, which indicated that they were exploring all possible means of supporting the Group, “they said.

If you would like to be notified immediately of any published coronavirus related articles, install the Index.me application and subscribe for free to the tag: coronavirus

The Index.me android application can be downloaded for free at this link, while the iPhone application can be downloaded here.

Air France and KLM are landing their fleets on coronaviruses

Share this On


1XBET: 100% Welcome Bonus.
CLICK ON THE BANNER TO REGISTER And CLAIM BONUS INSTANTLY


Leave a Comment