On Tuesday, Scandinavian airline SAS had signed a 3.3 billion Swedish crown (300 million euros) credit facility agreement.
The revolving credit facility allows SAS to tap funds to support its liquidity for three years and is 90% guaranteed by the Swedish and Danish governments.
Torbjörn Wist, chief financial officer at SAS, said in a statement that “the agreement strengthens our financial position in a difficult period when most of our fleet is grounded."
Like many airlines, SAS has been hit hard as the impact from the coronavirus pandemic has wiped out demand for air travel.
“The guaranteed debt package, which has been approved by the European Commission, was implemented in the context of the COVID-19 crisis and is intended to support the airline’s liquidity and prepare for the recovery of its activities,” SAS said in a statement.
Norwegian's restructuring plan approved
On Monday, the Extraordinary General Meeting of the Norwegian low-cost airline approved a restructuring plan to rescue the company and secure a state-guaranteed loan.
In Finland, the government is preparing to support Finnair whose losses due to the coronavirus epidemic have reduced the company's capital.
The Ministerial Committee on Economic Policy has advocated that Parliament apply for a mandate of up to 700 million euros to participate in Finnair’s recapitalization arrangements, including the planned share issue and any other arrangements.
