Ahenfo Radio Denmark

Denmark needs the pockets: Huge SAS rescue costs us over four billion


SAS screws up the green targets on top of a large rescue plan.

The rescue operation for SAS is extensive and unparalleled in the history of the fighter.

If the company’s shareholders choose on August 25 to vote in favor of the rescue plan, which has today been published on the Swedish stock exchange , the airline can look forward to being padded with as much as 10 billion Danish kroner.

An enormous amount that forces current shareholders to accept a decrease in their ownership stake from 100 to five percent of the company.

“For the shareholders, it is a question of plague or cholera, and when reading it it is clear that the Danish and Swedish governments carry this rescue through,” says Jacob Pedersen, an aviation analyst at Sydbank.

Denmark shoots NOK 4.3 billion in SAS

The plan increases the Danish state’s ownership interest in SAS from 14.2 to 20 percent of SAS.

At the same time, the two states have given a handshake on issuing loans to SAS for more than DKK 4 billion.

Here, the Danish state stands to deposit the largest contribution of around DKK 2.5 billion through two so-called hybrid bonds.

– This is a broader plan, and the Danish state has to go to the pockets to be here. But it has also succeeded in getting others to save the company, says Jacob Pedersen.

According to the Ministry of Finance, the rescue of SAS will initially cost Denmark up to DKK 4.3 billion.

– I am pleased that the government, together with all the parties of the Parliament, has chosen to contribute to the recapitalization of SAS. Thus, there will be a strong foundation for SAS to be on the wings as well, says Finance Minister Nicolai Wammen (S) in a Press release.

The green

With the announcement of the rescue plan, SAS has also released an updated business plan for the next few years.

It appears that SAS is now turning up the company’s green conversion. Among other things, SAS advances its target for when CO2 emissions should reduced by 25 percent, by 2025.

– An important part of this agenda is the ongoing renewal of SAS’s fleet continues. By 2025, SAS is expected to use one of the youngest fleets in Europe with the most environmentally friendly aircraft type in each segment, the company announcement states .

Among other things, SAS proposes that the special fuel-efficient aircraft, Airbus A320neo aircraft, which SAS commissioned in 2018 for an additional 35 of a total value of DKK 25 billion be purchased.

SAS has previously announced that the company will have at least 80 Airbus A320neo in traffic by 2023.


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