October 26, 2020

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Denmark and Sweden can save airline EUR 1 billion NOW

Denmark and Sweden can save airline EUR 1 billion NOW

The Danish and Swedish governments are allowed by the European Commission to put together around 1 billion euros in SAS. Reports the European Commission Monday. SAS, also known as Scandinavian Airlines, is the joint airline of Denmark, Norway and Sweden.

According to the countries, the measure was necessary to help the airline deal with the corona crisis and Commissioner Margrethe Vestager agrees. “SAS is very important for the connections between countries and for the economy. Like many other companies in the aviation sector, SAS is badly affected by the current crisis.”

Denmark contributes around 538 million euros and Sweden a little less (486 million euros). Both countries are the main shareholders: Denmark holds 14.2 percent of the shares and Sweden 14.8 percent. Norway sold In 2018 it was 9.88 percent shares for 652 million Swedish kronor, at current exchange rates this is 63 million euros.

The European Commission, like other airline aid programs, sets conditions for aid. For example, countries may not give more support than necessary to save the company from the corona crisis, and the company may not be able to distribute a dividend for the time being.