Some strings attached
A broad majority in the Folketing today not only agreed to forgive DKK 3.5 billion in debt to SAS, but also to increase Denmark’s ownership share in the airline from around 21.8 per cent to up to 30 per cent.
However, the government has demanded that SAS find other investors to support its business before further financial support comes from the state.
“A grant also presupposes that SAS can be re-established and continue as an economically viable commercial enterprise,” Wammen said.
The news comes at a critical time for the airline, which has been plagued by the pandemic, staff shortages, canceled flights, rising fuel prices and an impending strike by its pilots.
The COVID-19 pandemic has hit the aviation industry hard, and in February SAS asked its owners to pump in around DKK 6.5 billion to help turn the corner. its new strategy SAS Forward.