© Reuters. FILE PHOTO: The first Air France airliner’s Airbus A350 prepares to take off after a ceremony at the aircraft builder’s headquarters in Colomiers near Toulouse, France
BRUSSELS (Reuters) – The European Commission approved on Tuesday a French proposal to grant up to 4 billion euros ($4.72 billion) to recapitalise virus-hit Air France KLM (OTC:) in return for giving up to 18 slots per day at Paris Orly airport to a rival carrier.
The EU executive said France will have to present an exit strategy for the airline within 12 months unless it has reduced the state stake to below 25% by then.
It said Air France KLM will be banned from paying dividends, non-mandatory coupon payments, making share buybacks and giving out bonus payments to management until the recapitalisation is redeemed.
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