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Coronavirus aid: Air France 'must cut domestic flights to get state loan' | Coronavirus aid: Air France 'must cut domestic flights to get state loan' |
(32 minutes later) | |
A French government plan to rescue Air France is contingent on the carrier scrapping domestic flights, the country's economy minister has said. | A French government plan to rescue Air France is contingent on the carrier scrapping domestic flights, the country's economy minister has said. |
Air France should become "the most environmentally respectful airline", Bruno Le Maire told France Inter radio. | Air France should become "the most environmentally respectful airline", Bruno Le Maire told France Inter radio. |
The government has approved a €7bn (£6.15bn) loan to Air France, which has been hit hard by coronavirus curbs. | The government has approved a €7bn (£6.15bn) loan to Air France, which has been hit hard by coronavirus curbs. |
On Monday, the European Commission approved the proposal, saying it met EU rules on state aid. | |
In his radio interview, Mr Le Maire said the coronavirus crisis provided an opportunity to "reinvent our model of economic development to ensure it is more respectful of the environment". | In his radio interview, Mr Le Maire said the coronavirus crisis provided an opportunity to "reinvent our model of economic development to ensure it is more respectful of the environment". |
He added that this meant a number of Air France domestic routes would need to go - without giving details. | He added that this meant a number of Air France domestic routes would need to go - without giving details. |
"When you can travel by train in less than two and a half hours, there is no justification for taking a plane," he said. | "When you can travel by train in less than two and a half hours, there is no justification for taking a plane," he said. |
Like most airlines, Air France has drastically reduced its activities. The company is currently operating about 5% of its usual scheduled flights. | Like most airlines, Air France has drastically reduced its activities. The company is currently operating about 5% of its usual scheduled flights. |
Last month, Air France-KLM secured at least €9bn in government aid, as the Franco-Dutch airline group struggles to stay afloat because of the coronavirus outbreak. | |
The French authorities said Air France would get €3bn in loans and another €4bn in state-guaranteed funds. | |
The Dutch government said it was preparing between €2bn and €4bn in aid to KLM. | |
Earlier this year, Air France-KLM estimated the outbreak would cost the group between €150m and €200m in between February and April. | |
The two airlines merged in 2004. |