Finance

KLM has applied for 1.7 billion euros in NOW support

Of this, the company has already received 1.4 billion in advance. That amounts to the 80 percent that companies receive as an advance on the definitive NOW support. “We are very grateful for all the support we receive from the Dutch government,” the spokesperson would also like to say.

Update 5:45 PM:

We initially reported that KLM has applied for NOW for more than two billion euros. That was based on the 1.6 billion euros that was paid out as an advance of 80 percent, according to the Ministry of Finance. According to KLM, this is not correct and that is why the article has been adjusted in several places.

How much KLM ultimately received in total NOW will probably only be clear in 2023, when the final settlement follows for the sixth NOW period.

Advance and final settlement

The advance is calculated on the basis of the company’s estimate of the loss of turnover and the total wage bill in the period for which the NOW was requested. The UWV calculates the final amount by checking whether the expected loss of turnover corresponds to the actual decrease in turnover.

It is also checked whether the total wage bill was just as high as the company had previously stated. In the case of KLM, that amount could be lower due to the employees who left, a spokesperson for the Ministry of Social Affairs and Employment explains.

The company is not expected to have to repay anything of the emergency aid that KLM has received to date, reports outgoing Wopke Hoekstra (Finance, CDA) in his letter to the House of Representatives.

The company also does not fly nearly as much as it would like, partly because of the American entry ban for travelers from Europe.

Holland Casino

The Holland Casino proves that it is difficult to estimate how much NOW support you are entitled to as a company. The company expects to have to repay 27.7 million euros in excess NOW aid received. In total, the state gambling company received 201.9 million euros.

The reason that, according to the company, must be repaid is that the loss of turnover is lower than was assumed in the application and that excessive advances have been paid, Hoekstra reports.

Borrowing with the state as a backup

In addition to the wage support, KLM can also borrow a total of 3.4 billion euros thanks to the state. It concerns 1 billion euros directly from the government, of which the company has actually withdrawn 277 million euros.

In addition, the company has already withdrawn 665 million euros from a loan facility of 2.4 billion. If KLM cannot repay this, the state will pay for 90 percent of the damage.

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