KLM to keep control of finances after cabinet talks
KLM will retain control over its own finances. Parent company Air France-KLM's plans to transfer the subsidiaries' extra cash to the holding company is off the table, the French-Dutch airline group announced on Tuesday. The decision was made after intensive consultations between Air France-KLM CEO Alexandre de Juniac and the supervisory board of KLM. The board was against the idea of transferring money from KLM to Paris, where it could potentially be used to cover losses at Air France. The measures were intended to only make it easier and cheaper to borrow and invest as a group. Last week politics interfered explicitly with the issue, given the importance of KLM and Schiphol airport to the Dutch economy. The Second Chamber debated the financial situation at Air France-KLM on Wednesday. The Dutch government does not have money ready for a rescue plan for KLM if Air France-KLM goes bankrupt, State Secretary Wilma Mansveld (Infrastructure) wrote to the Second Chamber before the debate. According to her, Air France-KLM has to come up with plans that will improve the financial results by themselves. The Second Chamber once again posed questions to Mansveld about reports that Air France-KLM would like to "plunder" KLM's finances.