The European Union has approved €4 ($5.97) billion in state aid for national carrier Air France as it struggles through the economic impact of the COVID-19 pandemic, though the bailout comes with “strings attached,” including conditions of profitability, and more environmentally sustainable, less polluting policies.

In return for the aid, the carrier has also promised to make 18 slots, or 4 percent of its allotment, available to competitors at the busy Orly airport in Paris.

Nevertheless, the French government welcomed the EU decision, with French Finance Minister Bruno Le Maire stating, “This is good news for Air France and good news for the French.”

Last year, Air France got €3 ($4.48) billion in direct loans from the French state, which will be converted into bonds as part of a recapitalization of up to €4 ($5.97) billion.

In addition, the French state will participate in the capital increase of the holding company for the Air France-KLM airline alliance, to hold up to 29.9 percent of capital of the group, the French and Dutch governments said in a joint statement. The French state now holds 14.3 percent of the shares.

France and the Netherlands reaffirmed they are not considering nationalizing the group.

The French government, the airline’s largest single shareholder, has said it was essential to save the national carrier. Air France-KLM expects an operating loss of about €1.3 ($1.94) billion for the first quarter of 2021.

“These first recapitalization measures are an important milestone for our group in this exceptionally challenging period,” said Air France-KLM CEO Benjamin. “They will provide Air France-KLM with greater stability to move forward when recovery starts, as large-scale vaccination progresses around the world and borders reopen.”

KLM said in a statement that the company “will also need capital” and that the Dutch state is in talks with Brussels for that purpose. In 2020, the Dutch state supported KLM with a €1 ($1.49) billion loan.

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