French government agrees €4 billion rescue package for Air France

The French government has agreed a new rescue package for Air France-KLM, worth €4 billion. The deal will see a loan given last year converted into an investment in the company, while the French state will also increase its stake in the airline group to almost 30 percent. To satisfy European Union competition rules, the carrier will be giving up 18 landing slots at Paris Orly airport. Air France-KLM has suffered heavy losses over the past year, as passenger numbers have tumbled due to the Covid-19 pandemic.