Explained: Why survival of Scandinavian airline SAS hinges on Denmark | Explained News,The Indian Express

Many governments across the world helped shore up their national carriers during the pandemic. But Sweden and Denmark, which both have 21.8% stakes in SAS, are taking very different approaches to the Scandinavian brand.

Swedish loss-making airline SAS is fighting for survival, the latest carrier to hit financial straits due to hefty debts, stiff competition and soaring costs, even as the travel industry recovers from the pandemic.

SAS has said a restructuring plan announced in February depends on it raising 9.5 billion Swedish crowns ($946 million) in cash and converting 20 billion crowns of debt to equity.

Many governments across the world helped shore up their national carriers during the pandemic. But Sweden and Denmark, which both have 21.8% stakes in SAS, are taking very different approaches to the Scandinavian brand.

Denmark has said it is willing to increase its ownership and write off debt, but Sweden has refused to inject more money.

SAS AB, formally known as Scandinavian Airlines System Denmark – Norway – Sweden, is headquartered in Stockholm, but it uses Copenhagen Airport, the largest in Scandinavia, as its main hub.

https://indianexpress.com/article/explained/sas-airlines-debt-sweden-denmark-7999841/

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