EU competition regulators on Monday cleared a E1b plan by Denmark and Sweden to recapitalise virus-hit SAS, saying the measure would prevent the Scandinavian airline's insolvency. The plan is part of a larger recapitalisation package which will result in private investors holding a significant stake in SAS following the conversion of outstanding privately-held debt instruments into equity. The EC said the measure will not exceed the minimum needed to ensure the airline's viability and will not go beyond restoring its capital position before the coronavirus. "Denmark and Sweden will receive an appropriate remuneration for the investment, and there are additional mechanisms to incentivise SAS to redeem the States' equity participations and the new State hybrid notes obtained as a result of the recapitalisation," the EU competition enforcer said.<br/>
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The SIA Group continues to feel the impact caused by the COVID-19 pandemic. On Monday, the company released figures which showed three of its carriers continuing to see sharp declines in passenger traffic for July. SIA Group said this was down to "severely curtailed" demand for air travel, with border controls and travel restrictions remaining in place due to COVID-19. Group passenger carriage fell 98.6% year-on-year in July, while group passenger capacity declined 94.3% for the same period. The SIA Group's passenger load factor was at 21.6%, a decline of 64.2% year-on-year. In terms of cargo load factor, all route regions recorded increases in the month of July.cCargo load factor for the SIA Group was 26.5% as the capacity contraction of 60.9% year-on-year outpaced the 43.1% decline in cargo traffic. In July, Singapore Airlines reported a S$1.12b net loss in Q1 after drastically cutting capacity. For Singapore Airlines, its capacity for the month was 93.1% lower compared to July last year, with a “skeletal network in operation” connecting Singapore to 25 metro cities. Passenger carriage declined 98.2% for Singapore Airlines, resulting in a passenger load factor of 22.5%. It carried 27,600 passengers last month, compared with the 1,912,000 passengers it flew in July 2019. <br/>
Thailand’s bankruptcy court said Monday it had scheduled two more days of hearings to consider Thai Airways International’s request for restructuring. The Central Bankruptcy Court said in a statement 16 creditors opposed the airline’s restructuring proposals, of which three were institutional creditors and the rest, individual creditors. The court scheduled Aug. 20 and Aug. 25 for additional hearings for those opposing the plan. Thai Airways acting president, however, remained confident after the first hearing on Monday. “The hearings are promising and went smoothly,” Chansin Treenuchagron said. The airline submitted its bankruptcy and restructuring petition in May, giving it a stay on debt repayment. Minority creditors opposing the plan was not troubling because their objections were issues that Thai Airways could clarify, he said, without giving details. The court will have to approve the airline’s request for restructuring and a committee that would lay out the plan.<br/>