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KLM billions to oil traders and tax evaders
Translated from Dutch. View the original post
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In his TV speech to the nation of March 16 named Mark Rutte #KLM a “national icon”, his party mate Cora van Nieuwenhuizen (Minister of Infrastructure) promised “to do everything” to keep the airline afloat and Minister of Finance Wopke Hoekstra announced to invest 2 to 4 billion euros in the company.
But where does that money go anyway? Follow The Money figured it out and concludes that the state aid “does not go to maintaining employment”. “The money goes to oil traders and leasing companies.”
Although KLM's fuel consumption has fallen dramatically as a result of the corona crisis, the airline still has to pay a lot of money because the company has previously signed contracts to purchase kerosene at a fixed price.
According to the financial news agency Bloomberg, KLM has committed itself to a price of $78.50 per barrel of oil, while the world market is now paying around $20. “As a result, Airfrance-KLM's futures have a negative value: the airline has to pay not to consume kerosene,” explains Follow The Money.
Leasing companies leasing aircraft to KLM also benefit from the Dutch State aid. “These obligations continue, even now that the aircraft are grounded,” writes Follow The Money. Spicy: virtually all aircraft leasers are based in Ireland because they hardly have to pay tax there due to favourable tax rules.
Why does the Dutch taxpayer have to pull the wallet to pay oil traders and Irish tax evaders? Can't that be different? Yes, writes Jesse Frederik in a column for The Correspondent. Why should the oil traders and leasing companies not have to pay for the risk they took by going with KLM?
According to Frederik, the parties that lent money to KLM should also surrender. Thanks to Hoekstra's intervention, however, they do not have to worry now. Unjustly, writes Frederik: 'Those who have taken risks should also bear the consequences and should not pass them on to the taxpayer. Capitalism, friends, just now!”
But where does that money go anyway? Follow The Money figured it out and concludes that the state aid “does not go to maintaining employment”. “The money goes to oil traders and leasing companies.”
Although KLM's fuel consumption has fallen dramatically as a result of the corona crisis, the airline still has to pay a lot of money because the company has previously signed contracts to purchase kerosene at a fixed price.
According to the financial news agency Bloomberg, KLM has committed itself to a price of $78.50 per barrel of oil, while the world market is now paying around $20. “As a result, Airfrance-KLM's futures have a negative value: the airline has to pay not to consume kerosene,” explains Follow The Money.
Leasing companies leasing aircraft to KLM also benefit from the Dutch State aid. “These obligations continue, even now that the aircraft are grounded,” writes Follow The Money. Spicy: virtually all aircraft leasers are based in Ireland because they hardly have to pay tax there due to favourable tax rules.
Why does the Dutch taxpayer have to pull the wallet to pay oil traders and Irish tax evaders? Can't that be different? Yes, writes Jesse Frederik in a column for The Correspondent. Why should the oil traders and leasing companies not have to pay for the risk they took by going with KLM?
According to Frederik, the parties that lent money to KLM should also surrender. Thanks to Hoekstra's intervention, however, they do not have to worry now. Unjustly, writes Frederik: 'Those who have taken risks should also bear the consequences and should not pass them on to the taxpayer. Capitalism, friends, just now!”
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