Air France-KLM has won close to E10b in state aid from both the French and Dutch governments as it seeks to avoid a liquidity crunch due to the economic effects of the coronavirus on the airline sector. The French government confirmed Friday that it had agreed an E7b loan package for the airline while the Dutch government said that it was still in talks, but pledged between E2b and E4b. “Air France’s planes are grounded, so we need to support Air France,” said Bruno Le Maire, French finance minister, adding that the loans would come with conditions including that “Air France must become the most environmentally friendly airline on the planet”. Le Maire also confirmed that France is working on a deal for carmaker Renault which will be worth around E5b. The aid from the French government will take the form of an E4b loan, 90% of which will be guaranteed by the state, and which will be granted by a consortium of six French and international banks. It has a maturity of 12 months, with two consecutive one-year extension options exercisable by Air France-KLM. Another E3b will be in the form of a direct loan from the state as part of an E20b fund managed by the Agence des participations de l'État, which is in charge of the government’s equity holdings. <br/>