Finance

KLM has applied for 2 billion euros in NOW support

This is apparent from a calculation by RTL Z based on figures that caretaker Wopke Hoekstra (Finance, CDA) has sent to the House of Representatives.

Since the start of the corona crisis up to and including August of this year, KLM has already received more than 1.6 billion euros in NOW support from benefits agency UWV.

Application of 2 billion

Because the advances to companies are ‘as a rule about 80 percent’ of the final compensation, it can be concluded that the company has applied for more than two billion in NOW in the six periods that this was possible.

KLM cannot immediately confirm the amount to RTL Z. “We are very grateful for all the support we receive from the Dutch government”, the spokesperson would like to say.

Final bill will take a while

Both the Ministry of Social Affairs and Employment and the UWV confirm that the calculation method is correct, but emphasize that it is far from certain whether KLM will also receive the remaining 400 million. This will probably only become 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, the spokesperson for SZW explains.

Of the more than 1.6 billion euros that KLM has received in advance so far, the company is not expected to pay anything back, Hoekstra reports.

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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