SAS gets $1.5b to survive crisis

SAS said Tuesday it is getting an aid package worth 14.25b kronor ($1.5b) 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. 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. 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 EC. SAS CFO Torbjorn Wist told a webcast news conference that he expects approval by the Commission of the Danish and Swedish government aid. Sweden holds nearly 15% and Denmark some 14% 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% and 90% 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.”<br/>