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KLM CEO says not working on Air France break-up

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Via Yahoo Finance

AMSTERDAM (Reuters) – The chief executive of airline KLM said on Wednesday the Dutch company is not considering a break with its parent, Air France-KLM <AIRF.PA>, as the company attempts to cope with the financial consequences of the coronavirus outbreak.

“We are not working on disentanglement scenarios,” broadcaster RTL quoted CEO Pieter Elbers as saying on a call with journalists. “We’re working on financing.”

A spokesman for KLM confirmed the quotes made on a video call with Dutch journalists and reported by RTL were accurate.

The Dutch finance ministry is in talks with KLM about financial support. Elbers said on Wednesday a capital injection by the state is one possibility.

The Dutch and French governments have yet to decide how they will support Air France KLM beyond temporary programs to pay furloughed workers.

Due to travel restrictions amid the global virus outbreak, only around 10% of the company’s flights are currently being operated.

(Reporting by Toby Sterling; Editing by Chizu Nomiyama, Kirsten Donovan)

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