SAS dismisses 560 pilots, lays off 1,593 Danish employees

SAS Scandinavian Airlines (SK, Copenhagen Kastrup) has agreed a SEK14.25 billion kronor (USD1.5 billion) plan with its three largest shareholders to "restore equity" and secure around SEK12 billion (USD1.3 billion) in new funding, it announced in a statement on June 30.

The plan is backed by the governments of Sweden and Denmark and the third-largest shareholder, the Knut and Alice Wallenberg Foundation, the cash-strapped carrier said.

The measures include a deeply discounted share issue of about SEK2 billion (USD215 billion) to these owners, a broader rights issue of new shares amounting to SEK3.994 billion (USD429 billion), and new hybrid notes to the major shareholders totalling SEK6 billion (USD645 billion).

They also include the conversion of a SEK2.25 billion (USD242 billion) bond due in November 2022 into common shares and the conversion of SEK1.5 billion (USD161 billion) in existing hybrid notes into common shares.

The government of Norway, which sold the remaining stake it had in SAS in 2018, will continue to pay the airline to keep its network in the country. It has offered...

The Norwegian government has announced it will lift a current travel advisory against all non-essential travel to "some" European Union and European Economic Area countries on July 15, 2020, although the exact list has yet to be published.

"From 15 July, we are changing our travel advice for countries in Europe with acceptable levels of infection. The travel advice will be changed for countries that are excepted from the rules on quarantine on entry to Norway, that is countries that meet the criteria set by the Norwegian Institute of Public Health," Minister of Foreign Affairs Ine Eriksen Søreide said.

As of June 30, Norway maintains one of the strictest border regimes in Europe. Only citizens and residents of 31 European countries are allowed to enter Norway but, with the exception of people from Finland, Iceland, and Denmark (including the Faroe Islands and Greenland), have to self-quarantine for 10 days upon arrival.

Despite the restrictive border regime, Norway has reportedly recorded the smallest year-on-year decreases in air traffic in Europe thanks to its expansive network of domestic services,...

Jet Time (JTG, Copenhagen Kastrup) has terminated more than 90% of its employees in Denmark, 313 out of 342 of them, including pilots, cabin crew, and mechanics, the Danish radio station DR reported, while also aiming to reduce its all-leased fleet.

The charter and ACMI specialist typically flew around 400,000 Danes, Finns, and Swedes per year, mainly to Mediterranean holiday destinations, for TUI Group and other tour operators. The collapse of this market with the Covid-19 pandemic has resulted in lost revenues at Jet Time totalling around DKK800 million kroner (USD121 million) during its vital summer season.

Political parties in Denmark have been in the final stages of negotiations on an aviation support package totalling around DKK260 million (USD39 million), but this came too late for Jet Time. Among other things, this includes DKK135 million (USD20 million) to support domestic flights for three months and DKK90 million (USD14 million) for Danish airports to lower fees. It has also been possible for companies to participate in a wage compensation scheme during the crisis.

A further...

Sweden unveiled a plan on June 15 to recapitalise SAS Scandinavian Airlines (SK, Copenhagen Kastrup), with Denmark also set to contribute, the airline announced in a statement.

Sweden’s industry minister, Ibrahim Baylan, said the government would inject up to SEK5 billion kronor (USD535 million) in the struggling carrier if given the go-ahead by the country’s parliament. The support is conditional on SAS setting more stringent emissions targets.

“Let me be clear, Sweden will only go in with capital to SAS if clear, quantitative targets for reduced emissions are set in line with the Paris Agreement’s 1.5-degree goal,” Per Bolund, Sweden’s financial markets minister, said at a press conference, according to Reuters.

The Danish government also “communicated political unity” for the recapitalisation but did not provide a figure, the airline said. The government said the amount “must be matched by a fair share of ownership.”

“SAS is central to both Scandinavia and Denmark’s accessibility, Danish exports and business, and Danish workplaces. As a long-term and responsible co-owner, we are prepared to contribute to a long-term...