- Title: Dutch take stake in Air France KLM to counter French influence, shares slump
- Date: 27th February 2019
- Summary: ROISSY-EN-FRANCE, FRANCE (FILE - JUNE 11, 2016) (REUTERS) AIR FRANCE PLANE ON TARMAC ROISSY-EN-FRANCE, FRANCE (FILE - APRIL 3, 2018) (REUTERS) VARIOUS OF INFORMATION SCREEN ANNOUNCING CANCELLED FLIGHTS DURING AIR FRANCE PROTEST ROISSY-EN-FRANCE (FILE - APRIL 11, 2018) (REUTERS) AIR FRANCE PILOT WITH STICKER ON CAP READING (French): "Pilot on strike" UNIONIST SPEAKING ON MI
- Embargoed: 13th March 2019 10:41
- Keywords: The Netherlands Airline France Plane Dutch Finance Minister Wopke Hoekstra Aircraft Stock Exchange Trading Share price Protest Holland Air France KLM
- Location: BRUSSELS, BELGIUM / THE HAGUE AND SCHIPHOL, THE NETHERLANDS / ROISSY-EN-FRANCE, FRANCE / BERLIN, GERMANY
- City: BRUSSELS, BELGIUM / THE HAGUE AND SCHIPHOL, THE NETHERLANDS / ROISSY-EN-FRANCE, FRANCE / BERLIN, GERMANY
- Country: Netherlands
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA006A3CYURR
- Aspect Ratio: 16:9
- Story Text: Dutch Finance Minister Wopke Hoekstra said on Tuesday (February 26) that his government will take a stake in Air France KLM equal to that of the French government in order to increase its influence in the carrier's operations.
Hoekstra said the state had already taken a 12.7 percent stake for 680 million euros ($774 million) in the company and aimed to increase it to about 14 percent so its holdings comes close to the one of the French government, which owns 14.29 percent of the company.
The move comes weeks after a confrontation between the Dutch government and the company's French-dominated executive board over waning Dutch influence, which has been exercised through its management of group subsidiary and Dutch flag-carrier KLM.
Air France KLM's CEO Ben Smith travelled to the Netherlands for a reportedly uncomfortable meeting with Hoekstra before an Air France board meeting on February 19.
Smith, hired in August to restore peace and prosperity to the Franco-Dutch group after devastating strikes that led to his predecessor's resignation, has said Air France must narrow the profitability gap with its more efficient KLM stablemate.
Air France this month reported full-year operating earnings of 266 million euros, compared with 1.07 billion euros at the KLM subsidiary. - Copyright Holder: FILE REUTERS (CAN SELL)
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