Air France-KLM nears bailout with improved guarantees - sources

Air France-KLM is moving towards a 10 billion-euro ($10.9 billion) government-backed rescue deal, sources said, after France agreed to higher guarantees on loans designed to tide the airline group through the coronavirus crisis.

Paris is ready to vouch for 90% or more of the bank loans to Air France, rather than the 70% initially offered, two people with knowledge of the matter told Reuters. The increased guarantees were first reported by La Tribune on Wednesday.

Spokespeople for Air France-KLM and the French finance ministry declined to comment.