ANNOUNCEMENT 19 Jul 2017

In July 2017, the European Investment Bank (EIB) signed a loan agreement with Koninklijke Luchtvaart Maatschappij N.V. (KLM Royal Dutch Airlines) to support the company's purchase of new aircraft to renew its regional fleet.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Investment Bank, Financed Projects, KLM REGIONAL FLEET RENEWAL PROGRAMME: http://www.eib.org/en/projects/pipelines/pipeline/20160704
The European Investment Bank, Project summary, Project No. 20160704, KLM REGIONAL FLEET RENEWAL PROGRAMME: http://www.eib.org/en/projects/loan/loan/20160704
KLM, press release of 18 July 2017, EIB approves loan request for financing KLM Cityhopper fleet renewal: https://news.klm.com/eib-approves-loan-request-for-financing-klm-cityhopper-fleet-renewal/

Inception date: 19 Jul 2017 | Removal date: open ended

State loan

The loan agreement between the European Investment Bank (EIB) and KLM Royal Dutch Airlines was signed on 19 July 2017 and has a total approved value of EUR 250 million (approx. USD 287.9 million). Two tranches have so far been signed respectively on 19 July 2017 for a total amount of EUR 60 million and 12 November 2018 for a total amount of around EUR 34.4 million.

More specifically, the loan agreement will support the company's purchase of 19 new aircraft to renew its fleet used for regional destinations in Europe.

According to the EIB: "The new aircraft will support the promoter (ed. KLM Royal Dutch Airlines) in remaining competitive and in so doing that internal EU regional services are operated as cost and environmentally efficient as possible while contributing to improved accessibility to Europe's regions."

Koninklijke Luchtvaart Maatschappij N.V. (i.e KLM Royal Dutch Airlines) is the "flag carrier airline of the Netherlands" with its headquarters in Amstelveen, the Netherlands. The company is a member of the SkyTeam airline alliance and, according to a press release in July 2017, operates scheduled passenger and cargo flights to 147 destinations.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

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