SAS Scandinavian Airlines (SK, Copenhagen Kastrup) is under investigation by the European Commission (EC) over the legality of "public support measures" granted to it in 2012 by its shareholders, Sweden and Denmark. In a statement, the EC says its investigation will centre on the terms of a revolving credit facility (RCF) extended to the airline in 2012 by Sweden (21.4%), Denmark (14.3%), Norway (14.3%) and the Knut and Alice Wallenberg foundation (KAW) (7.6%). The EC believes the funds, amounting to USD520million (SEK3.5billion) and used for a restructuring exercise, were not carried out under market conditions "as public shareholders on the one hand and banks and the KAW on the other, were not in a comparable situation." The Commission also said it has concerns over the reliability of the airline's new business plan, on the basis of which the public shareholders decided to participate in the new RCF, and has therefore opened an investigation into Sweden and Denmark's participation in the RCF. The EC concluded by saying that other measures extended to SAS in 2009, 2010 and 2012 had been found to conform to EU regulations. SAS' financial position has been weak for several years and its financial performance has deteriorated significantly since 2008. For its part, the European Low Fares Airline Association (ELFAA) welcomed the Commission's decision to launch an investigation.