Air France has to halve CO2 output for $7.63 billion bailout

By Rahul Vaimal, Associate Editor
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French Government has mandated Air France to half its carbon dioxide emissions by 2024 to qualify for a $7.63 billion (Dh28 billion) bailout.

French Environment Minister, Elisabeth Borne said that the organization would have to “drastically” decrease domestic air traffic in exchange for state loan guarantees.

The airline posted a net loss of $1.96 billion in the first quarter of the year. In an effort to stem its losses Air France would cut flights to destinations served by rail in 2.5 hours, such as from Paris Orly to Bordeaux and Montpellier. The airline could keep service to Nice, Marseille and Toulouse.

Transavia, the Dutch low-cost airline and subsidiary of Air-France KLM, could be used to bridge the gap. Like other airlines, Air France halted almost its entire fleet amid the coronavirus outbreak as governments forced stay-at-home orders and demand for travel disappeared.

Air France is currently running between 3 to 5 percent of its usual program and serving 43 destinations for necessary passenger traffic as well as cargo. Air France has placed more than 90 destinations that it expects to serve by the end of June including over 40 in Europe. This would be around 15 percent of its normal agenda and will use 75 of its fleet of 224 aircraft.