France will provide ‘historic’ €7 billion aid package for Renault and Air France amid Coronavirus crisis
THE French government has announced they will provide a ‘historic’ package of multi-billion euro loans to help Renault and Air France through the Coronavirus crisis.
Finance Minister Bruno Le Maire announced that Air France will receive a €7 billion package and for Renault €5 billion.
Le Maire stated that the package was needed to save Air France amid an unprecedented industry crisis. However, he warned the money would come with strings attached, as the airline will have to improve its environmental credentials.
For Air France, the loan package is made up of €4 billion in bank loans guaranteed by the state and a €3 billion loan direct from the state.
“Air France should become the most environmentally respectful airline in the planet. This is the most important condition for me.
“Air France needs to present a plan for reducing CO2 emissions and transforming its fleet to be less polluting,” he said. “We need to save our national company and the 350,000 direct and indirect employees affected,” he said, while describing the plan as “historic support.”
For Renault, a €5 billion bank loan package guaranteed by the state is being worked on. “What is at stake here is our automobile industry. Renault is an industrial flagship that belongs to our culture and history,” said Le Maire.