SAS finalises $335 million state-backed credit facility
Scandinavian carrier SAS has signed an agreement for a SKr3.3b ($335m) three-year revolving credit facility which is 90% guaranteed by the Swedish and Danish governments. The debt package, which has already been approved by the EC, will “support the airline’s liquidity and prepare for the recovery of its activities”, says SAS. The airline is also in talks with Norway’s government for an additional NKr1.7b ($165m) of state-guaranteed funding. In March, Sweden’s national legislature approved a proposal to issue credit guarantees of up to SKr5b to airlines, of which SKr1.5b was to be allocated to SAS. Similar measures were approved by Denmark. Both governments are shareholders in the airline. The EC approved the plan in mid-April under temporarily relaxed state-aid rules. “The agreement strengthens our financial position in a difficult period when most of our fleet is grounded,” said SAS CFO Torbjorn Wist. “Going forward, we will continue our focused work on reducing costs and seeking additional support from the Scandinavian governments to ensure that SAS continues to be the leading provider of critical airline infrastructure in Scandinavia.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-05-06/star/sas-finalises-335-million-state-backed-credit-facility
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SAS finalises $335 million state-backed credit facility
Scandinavian carrier SAS has signed an agreement for a SKr3.3b ($335m) three-year revolving credit facility which is 90% guaranteed by the Swedish and Danish governments. The debt package, which has already been approved by the EC, will “support the airline’s liquidity and prepare for the recovery of its activities”, says SAS. The airline is also in talks with Norway’s government for an additional NKr1.7b ($165m) of state-guaranteed funding. In March, Sweden’s national legislature approved a proposal to issue credit guarantees of up to SKr5b to airlines, of which SKr1.5b was to be allocated to SAS. Similar measures were approved by Denmark. Both governments are shareholders in the airline. The EC approved the plan in mid-April under temporarily relaxed state-aid rules. “The agreement strengthens our financial position in a difficult period when most of our fleet is grounded,” said SAS CFO Torbjorn Wist. “Going forward, we will continue our focused work on reducing costs and seeking additional support from the Scandinavian governments to ensure that SAS continues to be the leading provider of critical airline infrastructure in Scandinavia.”<br/>
