{"id":7968,"date":"2019-02-27T12:48:56","date_gmt":"2019-02-27T12:48:56","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/air-france-klm-dutch-surprise-france-by-taking-airline-stake\/"},"modified":"2019-02-27T12:48:56","modified_gmt":"2019-02-27T12:48:56","slug":"air-france-klm-dutch-surprise-france-by-taking-airline-stake","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/air-france-klm-dutch-surprise-france-by-taking-airline-stake\/","title":{"rendered":"Air-France KLM: Dutch surprise France by taking airline stake"},"content":{"rendered":"\n
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\n The surprise announcement has hit the share price and shocked French politicians
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France has said it was taken by surprise by the Dutch government’s sudden purchase of a 12.68% stake in Air France-KLM.<\/p>\n

Shares in the airline company fell by 11% on Wednesday, after the Netherlands government said late on Tuesday it was acting to protect “Dutch interests”.<\/p>\n

The Dutch aim to match France’s 14.3% stake in the airline.<\/p>\n

French Finance Minister Bruno Maire has warned it should be “managed without national public interference”.<\/p>\n

According to French reports, the government in Paris was informed of the Dutch move only an hour before a press conference on Tuesday night, and after the shares had been bought.<\/p>\n

“Buying this stake ensures we have a seat at the table,” Dutch Finance Minister Wopke Hoekstra said of the move, which cost about \u20ac680m (\u00a3583m; $774m).<\/p>\n

The justification, he said, was to protect Dutch economic interests and jobs – particularly regarding Amsterdam’s Schiphol airport. Schiphol is Europe’s third busiest airport after London Heathrow and Paris Charles de Gaulle. <\/p>\n

Reacting to the shock news, French economy minster Bruno Le Maire said neither the Air France-KLM board nor the French state had been consulted.<\/p>\n

“It is essential to respect the principles of good governance and for Air France-KLM to be managed without state interference,” he said.<\/p>\n

Why the surprise move?<\/h2>\n

Air France-KLM was formed out of a merger of the two national flag carriers in 2004 – though the airlines themselves have continued to operate under their own separate banners.<\/p>\n

Until now, the Netherlands held only a 6% stake in KLM – the smaller subsidiary – while France owned 14.3% of the parent company.<\/p>\n

The surprise move from the Dutch came after a series of disagreements in which the Dutch felt they did not have enough influence in the holding company, which was deciding strategy.<\/p>\n