The Swedish State wants to reduce its ownership in SAS

The airline SAS is in crisis. Early on Tuesday morning, Swedish Minister of Trade and Industry Karl-Petter Thorwaldsson announced that the government “as a responsible owner” will create opportunities to provide support for the company’s crisis plan SAS Forward – but that the State will reduce its ownership.

SAS’s quarterly report, which was released exactly one week ago, showed that the airline continues to struggle with headwinds. The loss was SEK 1.6 billion and according to CEO Anko van der Werff, “equity is needed straight into the company“.

In an attempt to save the debt-laden company, the crisis plan SAS Forward has been developed. According to it, around SEK 20 billion in various types of loans and leasing agreements will be converted into share capital. In addition, austerity measures, including renegotiated collective agreements, are planned, which will reduce annual costs by SEK 7.5 billion by 2026. When this is in place, at least SEK 9.5 billion in capital contributions is needed to invest in the future, according to SAS CEO Anko van der Werff.

Minister of Trade and Industry Karl-Petter Thorwaldsson announces at a press conference on Tuesday morning that the Swedish state will not add any new capital to the airline’s rescue package. “This means that the state’s ownership in SAS will in all probability decrease,” says Thorwaldsson.

Today, the Swedish State owns 21.8 percent of SAS AB. Since 2010, there has been a mandate from the Riksdag (Parliament) to reduce ownership in the airline.

The State will, on the other hand, contribute to converting debt into equity (shares), announces Karl-Petter Thorwaldsson. “We are converting the loans we have in SAS, but at the same time, we clearly say that we will not provide new capital. They may seek capital in other ways, and from other investors“.

The Minister of Trade and Industry also reminds that the State contributed SEK 8.2 billion to SAS on four different occasions during the 2000s, most recently during the corona pandemic.

“Now it is up to SAS to deliver SAS Forward so that its planes can continue to fly,” says Thorwaldsson. “This is a comprehensive plan that SAS has presented. We are optimistic that if the plan is implemented, there will be a good SAS in the future.”

Source: SVT Nyheter