Air France Working On State Rescue Plan With EU

The French government is close to finalizing a recapitalization plan for Air France after addressing some antitrust concerns raised by the European Commission, according to people familiar with the matter.

The multi-billion-euro package could be announced in coming days following final approval from Brussels and the board of parent Air France-KLM, said the people, who asked not to be named because the information isn’t public.

A spokeswoman for Air France declined to comment, as did the government. The European Commission stated it’s in discussion with French authorities and “won’t prejudge the timing or outcome of these contacts.”

France and the Netherlands, which own a combined 28% stake in Air France-KLM, have been in talks for months on follow-on funding plan after granting the group €10.4 billion (US$12.3 billion) in direct loans and state-backed guarantees last year. The carrier, which had net debt of €11 billion at the end of last year, has stated that it’s planning to raise equity and quasi-equity.

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