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With the rescue package, SAS is guaranteed just over SEK 14 billion to survive in a world where there are still many planes on the ground. The guarantors are the Swedish and Danish states, as well as the largest private shareholder, the Knut Alice Wallenberg Foundation.
The package is based in part on a new issue of shares, but also on different types of bonds that are converted into shares. It offers a completely new ownership image, see the graph below: Fixed income funds are arriving as new owners, some of their holdings may sell out over time. The Wallenberg family has bought shares for nearly 260 million, but the sheer number of new shares means their ownership stake is cut almost in half. The Danish and Swedish governments are increasing ownership from 29 to almost 44 percent. The interest of small savers has not been so great.
Will this be more expensive than expected for the state?
– We have been given the Riksdag mandate to be able to spend up to five billion on various initiatives and my assessment is that it will be fine within that framework. My image is that, despite the rather great uncertainty, it has gone well to secure this financing, says the Minister of Commerce and Industry Ibrahim Baylan to DN.
In addition to rescue packages of just over SEK 14 billion, SAS will reduce its costs by SEK 4 billion in two years. This will be done by laying off up to 5,000 employees and increasing productivity. CEO Rickard Gustafson has said SAS can get through the winter and start making money again “when we get to 2022.”
Dansk Sydbank’s aviation analyst Jacob Pedersen notes that the spread of the infection continues to counteract the rapid increase in air traffic. He tells TT that he thinks the ransom money will last 18-24 months, after which the owner claims that he will likely have to enter new money into SAS.
– It is a benefit that so-called analysts and experts have, to speculate. We are making this effort because SAS is important to our infrastructure and we find ourselves in an ongoing difficult situation. I don’t think more speculation from us in this case as one of the biggest owners will contribute to more stability, says Ibrahim Baylan.
The Riksdag has given the government a mandate to sell SAS shares. What is the long-term plan like?
– To be completely honest, it feels like a very theoretical reasoning considering how aviation operations are going both in our country and globally at the moment. Now I hope that we can help this company get through this crisis and then when we are on firmer ground, we can do that kind of assessment.
