It is the third multibillion-euro lifeline extended this past week by the French government to companies battered by the pandemic.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Updated April 11, 2020
This is a difficult question, because a lot depends on how well the virus is contained. A better question might be: “How will we know when to reopen the country?” In an American Enterprise Institute report, Scott Gottlieb, Caitlin Rivers, Mark B. McClellan, Lauren Silvis and Crystal Watson staked out four goal posts for recovery: Hospitals in the state must be able to safely treat all patients requiring hospitalization, without resorting to crisis standards of care; the state needs to be able to at least test everyone who has symptoms; the state is able to conduct monitoring of confirmed cases and contacts; and there must be a sustained reduction in cases for at least 14 days.
The Times Neediest Cases Fund has started a special campaign to help those who have been affected, which accepts donations here. Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities. More than 30,000 coronavirus-related GoFundMe fund-raisers have started in the past few weeks. (The sheer number of fund-raisers means more of them are likely to fail to meet their goal, though.)
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.
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’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.
It seems to spread very easily from person to person, especially in homes, hospitals and other confined spaces. The pathogen can be carried on tiny respiratory droplets that fall as they are coughed or sneezed out. It may also be transmitted when we touch a contaminated surface and then touch our face.
No. Clinical trials are underway in the United States, China and Europe. But American officials and pharmaceutical executives have said that a vaccine remains at least 12 to 18 months away.
Unlike the flu, there is no known treatment or vaccine, and little is known about this particular virus so far. It seems to be more lethal than the flu, but the numbers are still uncertain. And it hits the elderly and those with underlying conditions — not just those with respiratory diseases — particularly hard.
If the family member doesn’t need hospitalization and can be cared for at home, you should help him or her with basic needs and monitor the symptoms, while also keeping as much distance as possible, according to guidelines issued by the C.D.C. If there’s space, the sick family member should stay in a separate room and use a separate bathroom. If masks are available, both the sick person and the caregiver should wear them when the caregiver enters the room. Make sure not to share any dishes or other household items and to regularly clean surfaces like counters, doorknobs, toilets and tables. Don’t forget to wash your hands frequently.
Plan two weeks of meals if possible. But people should not hoard food or supplies. Despite the empty shelves, the supply chain remains strong. And remember to wipe the handle of the grocery cart with a disinfecting wipe and wash your hands as soon as you get home.
Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.
That’s not a good idea. Even if you’re retired, having a balanced portfolio of stocks and bonds so that your money keeps up with inflation, or even grows, makes sense. But retirees may want to think about having enough cash set aside for a year’s worth of living expenses and big payments needed over the next five years.
Watching your balance go up and down can be scary. You may be wondering if you should decrease your contributions — don’t! If your employer matches any part of your contributions, make sure you’re at least saving as much as you can to get that “free money.”