Paris ups Air France stake, now top shareholder

The French state is upping its stake in Air France-KLM.

It's contributing to a recapitalisation of the airline totalling around 4.7 billion dollars.

Over one billion of that will go on newly issued shares.

That will see Paris more than double its current 14.3 percent stake.

And make it the firm's biggest shareholder.

It's just the latest move to help an airline battered by the global travel slump.

Last year the Franco-Dutch group got a bailout worth over 12 billion dollars.

The new deal has been agreed with the European Union.

As part of the terms, Air France-KLM will give up about 4% of its landing slots at Paris-Orly airport.

The slots will only go to rivals who have planes based at the airport, and have crews employed on local contracts.

The Dutch state has no plan to take part in the capital increase, according to the airline.

That will see its current 14% holding shrink as the new shares are issued.

Air France-KLM stock fell over 1 percent in early trade Tuesday (April 6).