Arab News

SAS gets $1.5 billion package to survive crisis

- AP Stockholm

Scandinavi­an Airlines said it is getting an aid package worth 14.25 billion kronor ($1.5 billion) after an agreement with its main shareholde­rs, securing the carrier’s survival amid the COVID-19 crisis. The government­s of Sweden and Denmark, which own shares in the airline, were partly financing the recapitali­zation plan, SAS said in a statement.

The aid package was also financiall­y supported by its third main owner, the Knut and Alice Wallenberg Foundation, a Swedish public and private foundation.

The package includes issuing new shares and converting bonds into shares.

In the statement, SAS said that amid the global travel restrictio­ns caused by the pandemic it had taken measures “to radically reduce costs as a result of the decline in demand, which is not expected to return to pre-COVID-19 levels before 2022.” The recapitali­zation plan is subject to approvals by a shareholde­rs’ meeting and the European Commission.

SAS Chief Financial Officer Torbjorn Wist told a news conference that he expects approval by the Commission of the Danish and Swedish government aid. Sweden holds nearly 15 percent and Denmark some 14 percent of the shares.

CEO Rickard Gustafson said the COVID-19 crisis will affect aviation demand for years to come. In April, SAS’ seat capacity was down 95 percent and 90 percent of staff were on temporary lay-offs, the airline said.

“In early March, overnight we had a different world to manage,” Gustafson said. “It is a different game now.”

Gustafson said SAS had set a 4 billion-kronor ($429 million) cost cutting plan that includes shedding up to 5,000 full-time positions — roughly half of the total workforce. Environmen­tal activists spoke out against rescuing an industry that emits high levels of climatewar­ming gases like CO2.

FASTFACT

SAS has set a 4 billion-kronor ($429 million) cost-cutting plan that includes shedding up to 5,000 full-time positions.

 ?? AP ?? Scandinavi­an Airlines is getting an aid package after an agreement with its main shareholde­rs, securing the carrier’s survival amid the COVID-19 crisis.
AP Scandinavi­an Airlines is getting an aid package after an agreement with its main shareholde­rs, securing the carrier’s survival amid the COVID-19 crisis.

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