Denmark agrees to invest in SAS Scandinavian as pilot strikes loom at the carrier

The Danish government and opposing political parties have agreed to invest in SAS as pilot strikes loom at the troubled Scandinavian carrier.

Under the cross-party agreement announced on June 10, 2022, Denmark will accept a write-down and conversion of its existing financial participation and invest new equity into SAS. However, the Danish state requires one or more new majority shareholders in order to ensure that its own shareholding remains a minority one.

“SAS is in a very serious situation,” Denmark’s finance minister Nicolai Wammen said in a statement. “With the agreement today, there is agreement that the state is willing to assume its share of the responsibility for restoring SAS, and that the state still wants to be a responsible and long-term co-owner of SAS for the benefit of Denmark’s international accessibility, Danish exports and business as well as Danish workplaces.”

The announcement from Denmark comes after Sweden announced on June 7, 2022, that it would not be investing new capital into SAS, although it would convert existing debts into equity capital.