The aviation industry has been one of the hardest hit by the coronavirus, with many cancelled flights around the world.

Nevertheless, there has been controversy over how governments should aid this industry, as employees and CEO’s are known for the big bonuses associated with their salaries.

Air France-KLM hit hard by the crisis, but will receive government support

As most of the fleet of the company has been grounded due to the current crisis, Air France-KLM is going through difficulties, reports NU.

The CEO of the company, Ben Smith, will receive a higher bonus if he manages to secure financial support for the company. This is part of a wider strategy by the company to cut all unnecessary costs.

AS much as they’re making noise about cutting costs, the company will almost certainly receive a 10 billion euro state aid package in the form of bank loans guaranteed by both the Netherlands and France.

Lots of criticism as a result of this bonus scheme

The company is under scrutiny as a result of this, with several politicians calling for strict conditions.


Part of the criticism comes from the reveal that KLM intended to increase its bonus ceiling during the crisis. KLM CEO Pieter Elbers renounced his higher bonus after this information was revealed. Further controversy was caused when it was discovered that hundreds of KLM pilots were planning on avoiding taxation.

Should the government be strict on giving aid to flight companies? Let us know in the comments.

Feature Image: Jyi1693/ Wikimedia Commons


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