• Sweden edition
 
VOLCANO FLIGHT CHAOS
Enterprise minister says no to airline bailout

Enterprise minister says no to airline bailout

Published: 20 Apr 2010 07:49 GMT+02:00
Updated: 20 Apr 2010 07:49 GMT+02:00

"We want to avoid state support, we want to resist," Olofsson told the Västerbottens-Kuriren daily after taking the first plane from Umeå to Stockholm-Arlanda Airport on Monday.

Olofsson later told news agency TT however that she could amend her position on state support on the condition that such provision was made in cooperation with other European partners.

The closure of a large part of European airspace has meant substantial losses for Scandinavian airline SAS and other carriers. But despite the losses the government intends to take as tough a line as it did with the automotive industry and decline to stump up financial support.

"The risk when states go in with their own support is that it creates unhealthy competition. This can be tough on small states such as Sweden," Maud Olofsson said, adding that the issue should be addressed at EU level.

"I do not want a state support race. The car industry crisis taught us that we have to work together," she told news agency TT.

The airspace shutdown meant that Olofsson was forced to take a car for the 700 kilometre journey home to Robertsfors on Friday. After the opening of Swedish airspace north of Stockholm on Monday, she was able to return to the capital by plane as scheduled.

The Local reported in February that the Swedish, Norwegian and Danish governments had agreed to back a new €510 million ($690 million) rights issue to bolster the firm's ailing finances after persistent losses.

The Swedish government has also declared its intention to reduce its stake in SAS from a current 21.4 percent. Denmark and Norway own 14.3 percent each.

TT/Peter Vinthagen Simpson (news@thelocal.se)

Your comments about this article

09:01 April 20, 2010 by hpunlimited
Good news, a free market economy should be just that! We should leave Socialist/Communist and Nazi idiology to history and never let it return to this world again. The Swedish government should sell out all its shares to the market and let it be a 100% privately owned company. Politicians are not good leaders of private enterprises.
09:14 April 20, 2010 by americanska
I agree with that decision. But then europe needs to adjust the law that puts the burden on airlines to feed and pay for hotels for everyone stranded by this.

It only makes sense for airlines to carry that burden in some cases.
09:32 April 20, 2010 by Twiceshy
SAS has gotten enough bailouts. Just let them go bankrupt and let Norwegian and other carriers take over.
10:03 April 20, 2010 by mbe
it is not the airlines fault... i think they are being hit hard enough on this. it is not their responsibility to assure that the people are taken care of... This is a mother nature thing.. as for the government.. well better off leaving them out of this. the less control they have the better the people are!!

if sas goes under that is business.... there will be another company that will come in and gladly take over the sas´s clients...
11:21 April 20, 2010 by aaww
sell Scandinavian airlines for 1 Euro and make somebody talented in airline business take care of it.

Nordic government especially 3 nordic government together can drag the airline to no where.
16:41 April 20, 2010 by sissygirl
I think it's good that the Swedish govt will not bailout the airlines. I didn't agree with the US govt bailing out the auto industry either, except that too many people would be out of work otherwise. It's one of those sticky situations. I hope everyone gets home safely and soon:).
07:01 April 21, 2010 by susco123
Zhe point the enterprise minister Maud Olofsson makes is a fair one for now a wait and see where the market place takes the airlines. With the rising cost of petrol and the loss of 200 US million dollars revenue a day, the smaller airlines will fail and the bigger airlines will have to raise their prices by mid-summer, passing their cost on to the consumer. We wait and see where the world economically will be in August. This is a world economic problem not one country or just a European problem, each of our countries have become interdependent on each other financial. We as nations have to grow up work together and become more proactive instead of reactive. Thanks for reading.
08:54 April 21, 2010 by calebian22
Uunbeliever,

You use Wikipedia as reference support? Wikipedia can be edited by anyone. This is why most schools, in America anyway, block wikipedia on their servers, or don't allow wikipedia references in papers from students.

FYI: God bless the US was written by me here in this thread. From your posts it is obvious that you think all Americans are the same, but I am not a lawmaker, so I can say God bless the US as much as I want. Maybe I should say, God bless Sweden too, so that you really get rankled.
Today's headlines
Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Stockholm 'sinking' oil spill ship safe
The ship was rescued on Thursday. Photo: Swedish Coast Guard

Stockholm 'sinking' oil spill ship safe

After fears a ship carrying around 52 tonnes of oil could sink in Stockholm's archipelago, Sweden's Coast Guard said the vessel had been towed to safety. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Sweden's Foreign Minister is Margot Wallström. Photo: TT

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

994
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN