This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/04/25/business/air-france-klm-bailout.html
The article has changed 16 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Air France-KLM Gets €10 Billion Bailout as Coronavirus Hits Travel | Air France-KLM Gets €10 Billion Bailout as Coronavirus Hits Travel |
| (32 minutes later) | |
| PARIS — France and the Netherlands will provide an unprecedented taxpayer-funded bailout of 10 billion euros, about $10.8 billion, to salvage Air France-KLM as the fallout of the coronavirus on the travel industry exacts a devastating toll on global air carriers. | PARIS — France and the Netherlands will provide an unprecedented taxpayer-funded bailout of 10 billion euros, about $10.8 billion, to salvage Air France-KLM as the fallout of the coronavirus on the travel industry exacts a devastating toll on global air carriers. |
| Air France-KLM, one of Europe’s biggest airlines, will receive a €4 billion bank loan backed by the French state and a €3 billion direct government loan, Bruno Le Maire, France’s finance minister, said late Friday. The Dutch government said it would provide an additional €2 billion to €4 billion in public aid. | Air France-KLM, one of Europe’s biggest airlines, will receive a €4 billion bank loan backed by the French state and a €3 billion direct government loan, Bruno Le Maire, France’s finance minister, said late Friday. The Dutch government said it would provide an additional €2 billion to €4 billion in public aid. |
| The aid infusion falls short of nationalizing the company, in which the French and Dutch states each own a 14 percent share. The European Commission — the executive branch of the European Union, which has thrown out restrictions on state support amid a deep economic downturn — swiftly approved the bailout. | The aid infusion falls short of nationalizing the company, in which the French and Dutch states each own a 14 percent share. The European Commission — the executive branch of the European Union, which has thrown out restrictions on state support amid a deep economic downturn — swiftly approved the bailout. |
| It is the third multibillion-euro lifeline extended this past week by the French government to companies battered by the coronavirus. | It is the third multibillion-euro lifeline extended this past week by the French government to companies battered by the coronavirus. |
| The government is working on a €5 billion state-backed loan package for the flagship French automaker Renault, Mr. Le Maire said on Friday. Sales at Renault — which is part of the world’s biggest auto alliance, with Nissan and Mitsubishi Motors — have been hammered after quarantines closed dealerships and factories across Europe. The company had already been flagging in recent months as the arrest and subsequent escape of its former chairman, Carlos Ghosn, from Japan in January took a toll on the group. | The government is working on a €5 billion state-backed loan package for the flagship French automaker Renault, Mr. Le Maire said on Friday. Sales at Renault — which is part of the world’s biggest auto alliance, with Nissan and Mitsubishi Motors — have been hammered after quarantines closed dealerships and factories across Europe. The company had already been flagging in recent months as the arrest and subsequent escape of its former chairman, Carlos Ghosn, from Japan in January took a toll on the group. |
| The state also backed a €500 million loan this past week for the French electronics retail giant FNAC-Darty, which employs tens of thousands in France, to help it secure cash flow and prepare for recovery after the pandemic. | The state also backed a €500 million loan this past week for the French electronics retail giant FNAC-Darty, which employs tens of thousands in France, to help it secure cash flow and prepare for recovery after the pandemic. |
| Since the crisis hit, the French government has backed more than €20 billion in loans for 150,000 companies, part of a huge fiscal package to support the economy and limit mass joblessness until businesses can safely start operating again. The French economy is expected to contract by at least 8 percent this year, the sharpest drop since the end of World War II. | Since the crisis hit, the French government has backed more than €20 billion in loans for 150,000 companies, part of a huge fiscal package to support the economy and limit mass joblessness until businesses can safely start operating again. The French economy is expected to contract by at least 8 percent this year, the sharpest drop since the end of World War II. |
| Few industries have been dealt as sharp a blow as the airlines, as worldwide travel bans bring fleets to a standstill. The International Air Transport Association cautioned this week that European airlines would see demand drop 55 percent in 2020 compared with 2019, with potential totaling $89 billion. | Few industries have been dealt as sharp a blow as the airlines, as worldwide travel bans bring fleets to a standstill. The International Air Transport Association cautioned this week that European airlines would see demand drop 55 percent in 2020 compared with 2019, with potential totaling $89 billion. |
| Flights around Europe have slumped 90 percent, and most carriers don’t expect service to resume before June. The rollout of air traffic may depend on the introduction of government-mandated social distancing measures inside aircraft, the air transport association said. | Flights around Europe have slumped 90 percent, and most carriers don’t expect service to resume before June. The rollout of air traffic may depend on the introduction of government-mandated social distancing measures inside aircraft, the air transport association said. |
| The Trump administration reached a deal with major U.S. airlines this month over the terms of a $25 billion bailout to help the companies pay flight attendants, pilots and other employees. | The Trump administration reached a deal with major U.S. airlines this month over the terms of a $25 billion bailout to help the companies pay flight attendants, pilots and other employees. |
| Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will participate in the bailout, which is part of an economic stabilization package that Congress passed last month. | Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will participate in the bailout, which is part of an economic stabilization package that Congress passed last month. |
| European airlines were affected earlier than in the United States, after President Trump on March 12 shut America’s borders to most European travelers. While the travel ban helped slow the spread of the outbreak in the United States, European carriers have struggled to cope. | European airlines were affected earlier than in the United States, after President Trump on March 12 shut America’s borders to most European travelers. While the travel ban helped slow the spread of the outbreak in the United States, European carriers have struggled to cope. |
| The German airline Lufthansa said on Thursday that it would require government bailouts after plummeting sales led to a loss of more than a billion euros in the first quarter, and investors are no longer willing to lend the company money. Passenger traffic has fallen to almost nothing, and the second quarter will be even worse, Lufthansa said in a statement. | The German airline Lufthansa said on Thursday that it would require government bailouts after plummeting sales led to a loss of more than a billion euros in the first quarter, and investors are no longer willing to lend the company money. Passenger traffic has fallen to almost nothing, and the second quarter will be even worse, Lufthansa said in a statement. |
| Norwegian Air is seeking creditor support for a rescue plan that would convert up to $4.3 billion of debt into shares and raise new equity after it announced temporary layoffs last month of 7,300 employees, about 90 percent of its work force, and asked Norway’s government for help. | Norwegian Air is seeking creditor support for a rescue plan that would convert up to $4.3 billion of debt into shares and raise new equity after it announced temporary layoffs last month of 7,300 employees, about 90 percent of its work force, and asked Norway’s government for help. |
| Updated June 5, 2020 | Updated June 5, 2020 |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Air France, in which the government holds a 14 percent stake, put employees on part-time paid furlough for six months, complying with a government demand not to lay off workers. The carrier has lost about €25 million a day since then, pushing it into a critical financial state. | Air France, in which the government holds a 14 percent stake, put employees on part-time paid furlough for six months, complying with a government demand not to lay off workers. The carrier has lost about €25 million a day since then, pushing it into a critical financial state. |
| With almost all of the company’s planes grounded, the financial lifeline is needed “to save the 350,000 direct and indirect jobs that go with them,” Mr. Maire said. | With almost all of the company’s planes grounded, the financial lifeline is needed “to save the 350,000 direct and indirect jobs that go with them,” Mr. Maire said. |
| Air France-KLM’s chief executive, Ben Smith, told pilots this month during a videoconference call that it would probably take two years to regain the level of traffic seen in 2019. The carrier, which hopes to gradually restore flights over the summer, warned recently that with absence of ticket sales, it would urgently need cash in the July-September quarter to stay afloat. | Air France-KLM’s chief executive, Ben Smith, told pilots this month during a videoconference call that it would probably take two years to regain the level of traffic seen in 2019. The carrier, which hopes to gradually restore flights over the summer, warned recently that with absence of ticket sales, it would urgently need cash in the July-September quarter to stay afloat. |
| In a statement, the finance ministers of France and the Netherlands said they would “take all necessary measures” to help the carrier “overcome this severe pandemic crisis.” The loans to the company and fresh government money are aimed at preserving the carrier’s financial and operational situation, they said. | In a statement, the finance ministers of France and the Netherlands said they would “take all necessary measures” to help the carrier “overcome this severe pandemic crisis.” The loans to the company and fresh government money are aimed at preserving the carrier’s financial and operational situation, they said. |
| The support “is not a blank check” Mr. Le Maire said on Friday, adding that the governments had set profitability conditions on the carrier. | The support “is not a blank check” Mr. Le Maire said on Friday, adding that the governments had set profitability conditions on the carrier. |
| “It is the money of the French, therefore it is necessary that the company make an effort to be more profitable,” he said. The company will also be required to become “the most environmentally friendly company on the planet,” he added. | “It is the money of the French, therefore it is necessary that the company make an effort to be more profitable,” he said. The company will also be required to become “the most environmentally friendly company on the planet,” he added. |