Air France-KLM set to unveil debt plan after board approval

The board of Air France-KLM approved an aid package aimed at strengthening the indebted carrier’s balance sheet, according to people familiar with the matter. The plan will be unveiled early Tuesday, said the people, who asked not to be named because the information isn’t public. The funding includes the conversion of government loans into hybrid bonds and raising fresh equity, one of the people said. A spokeswoman for the company declined to comment. The French government and the European Commission earlier reached agreement on fresh support for the carrier, which has been hurt by a drop in air travel since the start of the pandemic. France and the Netherlands -- Air France-KLM’s biggest shareholders with a combined 28% stake -- granted the company E10.4b in direct loans and state guarantees last year. The governments have been working on a new package to alleviate the carrier’s debtload. The commission has sought concessions to allow more competition, as it had for rival Lufthansa’s rescue.<br/>