SAS is looking for a total SEK 12.5 billion ( $1.3 billion) as part of a recapitalisation plan just weeks after signing the deal with the Danish and Swedish governments for SEK3.3 billion, and the third time it’s has looked for support since COVID 19 hit the aviation sector.
The additional capital raising was announced in a press release by SAS where it said the Swedish government had put forward a proposal to the Swedish Parliament to support with up to SEK 5 billion as part of the company’s recapitalisation plan.
SAS says it has also received support from the Danish government for further capital raising.
In its release SAAS said that the total of SEK 12.5 billion would be reached by a number of measures that will impact both the state and private investors.
“SAS remains in dialogue with selected stakeholders regarding the terms and conditions of the recapitalisation plan and the burden sharing measures required by the Swedish and Danish governments.
These measures will involve internal, external and financial stakeholders in the company, including the holders of SAS outstanding bonds and hybrid notes. Further details are intended to be announced before end of June,” the company said in its statement.
SAS predicted it would be 2022 before passenger demand returned to pre- COVID 19 levels and that in addition to laying off 5000 staff the firms was also making ambitious targets to improve productivity by up to 25%. SAS said it would also postpone aircraft deliveries but didn’t give details.