The Swedish state intends to support the airline SAS with up to SEK 5 million, or almost EUR 500 million.
The Swedish government expressed its intention on Monday, but said the recapitalization would require drastic climate action from SAS. According to Money Market Minister Per Bolund, emissions must be cut significantly and quickly.
According to SAS, the Danish government has also agreed to recapitalize the airline. The company estimates that the support measures will provide it with a total of approximately SEK 12.5 billion, or approximately EUR 1.2 billion in funding.
The Swedish and Danish states are the main shareholders in SAS. Sweden owns 14.82 percent and Denmark 14.24 percent. According to Economy Minister Ibrahim Baylan, it cannot be ruled out that Sweden's holding will increase. However, it depends, he said, on the other owners and the progress of the negotiations.
The details of the financing are to be agreed by the end of June. The recapitalization also requires the approval of the Swedish Parliament.
SAS, like many other airlines, has run into difficulties since the coronavirus pandemic halted the majority of air traffic. The company's quarter from February to April was a loss of EUR 350 million. Already in May, the Swedish and Danish states guaranteed a loan of EUR 300 million to SAS.
In its press release, SAS said it was also negotiating support with the Norwegian state. Norway is no longer one of the company's owners, but SAS has a lot of operations in Norway.
The Swedish state also intends to support Swedavia, which operates ten airports in the country. Swedavia is aware of a subsidy of SEK 3.15 billion, or about EUR 300 million.
At the same time, Swedavia announced that it intends to suspend ongoing renovation projects at Stockholm Arlanda Airport for the time being.