Denmark, Sweden willing to inject new funds into airline SAS

Ibrahim Baylan

THE Governments of Denmark and Sweden, the two main shareholders in Scandinavian airline SAS, on Monday, expressed their willingness to inject new funds into the carrier, citing the importance of the airline.

Sweden’s government said it would seek parliamentary approval to contribute up to 5 billion kronor (or 533 million dollars), adding that, it would hinge on environmental demands and the participation of other shareholders.

According to the Minister for Business, Industry, and Innovation, Ibrahim Baylan, Sweden may become the largest owner.

“But I do not want to specify the level, that will be showing your hand before the tough negotiations that are due,” he said.

Denmark and Sweden each hold almost 15 percent of SAS. Other owners are private, including pension and insurance firms.

Baylan’s cabinet colleague, Per Bolund, Minister for Financial Markets and Housing, noted that Sweden would only step in if SAS fulfills high demands in terms of climate goals, as well as emission cuts.

However, the Swedish Government also noted that there was a need for approval from the European Commission.

SAS, which has seen demand plunge in the wake of coronavirus measures, has estimated its recapitalisation needs to be about 12.5 billion kronor.

According to the Danish Finance Minister Nicolai Wammen, SAS is key to both Scandinavia’s and Denmark’s accessibility, Danish exports, business and workplaces.

However, Denmark was yet to specify the size of its contribution.

The SAS board recently approved a revised business plan, including cutting up to 5,000 positions, about half its workforce. SAS meanwhile was continuing talks with other shareholders.(dpa/NAN)

– Jun. 15, 2020 @ 12:35 GMT |

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