A couple of decades or more ago, well before the AK/KLM merger (or whatever it is) was mooted, and KLM had spurned the advances of BA, AF was technically bankrupt. It was reported that the interest payments on their debt was greater than their operating income (I think it was). At the time KLM was reasonably profitable for a national carrier at that time.
AF needed restructuring. Brussels had already said no government subsidies to the likes of Alitalia, Olympic, Iberia etc. The French president went to Brussels and demanded that AF could not go to the wall. He asked to be allowed to give 3 'tranches' of money over a 2-3 year period to bail out AF. The 2nd & 3rd tranche would only be allowed by Brussels if there had been significant positive restructuring. Somehow or other he conned Brussels into agreement and they survived where others struggled. The irony is that KLM then had its own woes and AF stepped in as the senior partner, just as BA had tried and been rejected. I think KLM have been regretting it ever since. Both have strong unions, but of very different hue, as is the management.
What I never understood, not could I find anyone on the inside to tel me, is what happened to the 5 year transition plan. There was supposed to be a 5 year transition period after the partnership was established, and then what. And in all the negotiations and valuations you never heard anything of Martinair or Transavia's future being mentioned, nor even their value being included. One wonders if they had been included, and personnel, would that group have been larger than AF and then KLM might have had the lead. There is possibly much hidden behind closed doors and in dusty files.