On Tuesday, French Finance Minister Bruno Le Maire said , the French state will be able to raise its shareholding in Air France to nearly 30% and become its biggest shareholder under a state-backed refinancing to help the airline through the COVID-19 crisis.
French Finance Minister Bruno Le Maire said the EU had also allowed the French state to raise its stake in the national carrier to 30 percent, up from the current 14.9%.
In another development, the EU approved a plan on Tuesday that will enable the French government to inject up to four billion euros into Air France, to cruise through pandemic.
The agreement, worth $4.7 billion, happened after weeks of negotiations with the European Commision (EC), that ensures, state aid does not give companies an unfair advantage.
In return for the green light, the commission, which is the EU's anti-trust regulator, said Air France would relinquish about 18 slots per day at Orly, Paris' second-largest airport after Charles de Gaulle (CDG).
"This gives competing carriers the chance to expand their activities at this airport, ensuring fair prices and increased choice for European consumers," EU competition commissioner Margrethe Vestager said.
European Commission approved plan will see French government to convert 3 billion euros ($3.54 billion) of already granted state aid into hybrid instruments and raise up to 1 bilion euros in new equity capital, Le Maire told France.
