Air France-KLM has announced that it is in negotiations with private equity Firm Apollo Global Management over a potential €500 million capital injection which will be used to partially repay French state aid connected to one of its engineering and maintenance units which owns a pool of engines. The deal will not involve any equity and is being viewed as an alternative to a more traditional sale-and-leaseback deal involving the spare engines.
The Dutch finance ministry, a shareholder in the airline group, said it supported the proposal. “Attracting private investors is good for the financial position of the company. We have a common interest that it frees itself of state aid,” the ministry told Reuters news agency.
Back in February this year Air France-KLM indicated it was looking to raise €4 billion to repay pandemic-related support, while this month the carrier announced that it was considering measures such as a capital increase and quasi equity instruments to speed up payments to the French state, its top shareholder. Shipping firm CMA CGM announced that it would be taking an equity stake in Air France-KLM. (£1.00 = €1.18 at time of publication).Email Post to a Friend