SAS receives a state guarantee of NOK 2 billion. The Swedish and Danish state share in the gate.
The outbreak of Covid-19 has for a moment raised the bread out of the mouth of the partially state-owned airline SAS.
To avoid the Nordic airline’s biggest financial ruin, the Danish and Swedish states have now decided to provide guarantees for a total of three billion Swedish kroner, equivalent to just over two billion Danish kroner for SAS.
SAS is of great importance for both the accessibility of Scandinavia and Denmark. It also extends to jobs, businesses and the economy as a whole.
“This is why the Danish and Swedish states, as the two largest owners, have jointly decided to support SAS by initially providing guarantees for a total of three billion Swedish kroner,” said Finance Minister Nicolai Wammen in a press release.
The Danish and Swedish state together own almost 30 percent of SAS. The Minister of Finance calls the collateral “the first step” and emphasizes that the Danish state is ready to do “whatever is needed” to ensure SAS’s survival.
“This is a first step, and as a long-term and responsible co-owner of SAS, the Danish state will closely monitor developments and do whatever is necessary for SAS to come through the crisis and continue to be operational thereafter.”
Halved in value
In just one month, SAS’s market value has fallen by 40 percent.
The attempt to curb the spread of the coronavirus has led to empty airports around the world over the past week. That is why SAS announced on Sunday that it is now awake and sends 10,000 equivalent to 90 percent of the workforce back home.
In Denmark, 4,000 out of 4,200 employees are sent home. The state wage compensation scheme must cover part of the employees’ salary.
SAS is currently negotiating with the company’s professional groups about a sustainable solution for employees and SAS.
This is how the state helps employers and workers
• Compensation scheme for sports clubs, concert organizers, trade fairs and others who have canceled events over 1,000 participants.
• Large corporations get deferred tax and VAT payments: The government extends the payment of a-tax and labor market contributions by four months and VAT by one month.
• Small and medium-sized businesses are allowed to defer VAT and b-tax payments.
• Companies receive 75 percent of a salaried employee’s salary and 90 percent of a non-salaried employee’s salary if the plan was to fire 30 percent of employees or more than 50 employees.
• However, DKK 23,000 is the maximum compensation that the state pays for salaried employees and DKK 26,000 for hourly workers a month.
• Employers can be reimbursed for sickness benefits from day one if employees are registered with Covid-19.
• The Danish and Swedish state has made government guarantees of DKK 2 billion available to SAS.