Air France-KLM: Apollo to make capital injection

(CercleFinance.com) - Air France-KLM has announced that it has entered into exclusive discussions with Apollo with a view to injecting 500 million euros into the capital of an operational subsidiary of Air France, which owns a fleet of spare engines dedicated to its engineering and maintenance activities.


The proceeds of the transaction will enable the airline to repay part of the French government's perpetual bonds, and will facilitate the financing of the future acquisition of spare engines needed for the ongoing renewal of its fleet.

The structure will not result in any change in the way the spare engines are used, nor will it have any impact on employee contracts. This capital would be accounted for as equity under IFRS, which would strengthen Air France-KLM's balance sheet.


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