Sweden’s Government Refuses To Give More Money To Airline SAS & More News Here

The authorities of Sweden has introduced it is not going to give any contemporary capital to struggling Scandinavian Airlines (SAS). It’s the newest step in the direction of the Swedish authorities’s exit from possession of SAS, which the Norwegian authorities accomplished a number of years in the past.

At the tip of April 2022, each governments of Denmark and Sweden held 21.8% possession of SAS. “We will most likely not be a long-term owner of SAS,” confirmed Sweden’s minister of commerce and trade Karl-Petter Thorwaldsson throughout a press convention.

The information will come as a blow to airline executives who should elevate substantial new capital as a part of a rescue plan following one more quarter of heavy losses.

Sweden will help the restructuring plan

However, regardless of the Swedish authorities’s refusal to inject contemporary capital into the airline, it should help the conversion of debt into shares, a cornerstone of the airline’s survival plan. Such a transfer will see the Swedish authorities’s 21.8% possession share of SAS considerably diluted.

“SAS would like to express its gratitude to the Swedish state for the support we have received through the pandemic and the previous years,” said an airline press launch.

A practical method ahead?

Named ‘SAS Forward’, the restructuring plan features a deliberate conversion of 20 billion Swedish kroner of debt into shares. But it additionally consists of plans to lift 9.5 billion Swedish kroner in contemporary funding, one thing which is able to now be more difficult following the Swedish authorities’s determination.

The determination was largely anticipated provided that the Swedish authorities has on a number of events offered direct monetary help to SAS, totalling greater than 8 billion Swedish kroner.

This included help throughout the pandemic grounding. “Had we not been responsible owners then, the company would not have survived,” mentioned Thorwaldsson, a indisputable fact that was confirmed by the airline.

Last week, Swedish media reported {that a} group of international traders are pursuing due diligence forward of a possible funding in SAS. However, that funding can be given that the opposite components of the restructuring plan are achieved.

In addition to the brand new capital and conversion of debt to shares, SAS Forward options substantial price slicing measures together with the renegotiation of collective agreements. Earlier this yr, the airline introduced the cancellation of round 4,000 flights for this summer time season.

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