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Troubled SAS rejects bankruptcy rumours

Troubled SAS rejects bankruptcy rumours

Published: 28 Oct 2012 09:07 GMT+01:00
Updated: 28 Oct 2012 09:07 GMT+01:00

Scandinavian airline SAS has moved to quash rumours that it is facing bankruptcy and that banks are considering not extending loans to the troubled carrier.

"There has been speculation all autumn, there are new things almost everyday, but nothing is decided," said SAS communications head Knut Morten Johansen to the Norwegian website E24.no.

The media has been awash with reports that SAS is facing insolvency, that its banks were losing patience and that the company is set to be sold.

Johansen rejected the sale rumours, explaining that the speculation was "frustrating".

According to a report in the Dagens Industri business daily this week, the airline and its three major shareholders - the Swedish, Norwegian and Danish states - held meetings with its creditors to discuss the airline's future.

The Swedish state has invested some 2.4 billion kronor ($360 million) in the loss-making airline in the past three years, money which has long since been exhausted.

The airline posted losses of 1.69 billion kronor in 2011 and CEO Rickard Gustafsson pledged to accelerate the firm's cost-cutting programme, seeking five billion kronor in savings and new revenue in 2012.

According to the Dagens Industri report, the company's loan facilities expire in March 2013 and rumours that the banks were disinclined to extend the loans have persisted.

Rumours of a sell-off have been circulating since 2008, with Lufthansa long seen as the most probable buyer. A concrete bid has however never been tabled.

Any sale of the company is complicated by its ownership structure with Sweden, Norway and Denmark all required to agree any eventual sale.

TT/The Local/pvs (news@thelocal.se)

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Your comments about this article

09:56 October 28, 2012 by Attestupa
Come on guys !!! Do NOT allow SAS to be absorbed by a larger airline. It is Scandinavian and is a great airline.
13:21 October 28, 2012 by Rap43
I haven't voluntarily flown SAS since they stopped supplying free coffee and sandwiches while still charging full fares...

Lufthansa, British Airways, two of the biggest in the world, charge about the same and still supply full service, not to mention better connections with the rest of the world.
17:16 October 28, 2012 by JulieLou40
It would be such a shame to see SAS go, we've always had great service from them. And I don't know why the other poster complained about not getting anything for free-every time we've taken the first flight of the day, we've been given a delicious breakfast, warm bread, and all the tea and coffee we can drink-Norwegian don't do that. I think they're great, and hope the company survives.
17:18 October 28, 2012 by matona1
nothing special about the airline,and what is the diffrent between the local and Sj,why the local blocked coment on the first article,(SJ apologizes after 'asylum-seeker' gaff) same sjit
17:54 October 28, 2012 by Flygger
@Rap43 You may be keen to hear that free coffee has been re-introduced for some time now and I even get a free refill !!

They could drop the newspapers though as far as I would care.

Best airline though is Finnair. Miles better in my humble opinion.
19:44 October 28, 2012 by eurobloke
@Rap43, have you tried BA coffee? It taste like s***, and it is probably instant.
23:08 October 28, 2012 by johan rebel
The Scandinavian governments should have pulled the plug on SK years ago, instead of repeatedly propping it up at the taxpayers' expense
08:23 October 29, 2012 by cattie
I am a frequent flyer to USA and live in Stockholm. I always avoid flying SAS since they only give 25% mileage credit on economy tickets. Lufthansa gives full credit. While I may need an extra stop in Germany, I want to elite status and free flights, I consider it a waste of a trans-atlantic flight to fly SAS.

A couole of years ago, I wrote SAS and explained to them that the purpose of a loyalty program was to INCREASE loyalty and sales -- not decrease it. I really think they do not run the airline like a business, they responded with the typical Jante-like "We do not do that in Sweden..."
10:09 October 29, 2012 by Andrew
I will avoid flying on SAS both on domestic and international flights. Finnair is way much better in terms of service and inflight entertainments. Prices is not even competitive anymore. Lufthansa is good too and together with Swiss Airlines, I rather choose them then SAS.
10:45 October 29, 2012 by EP
SAS can't even get their website to work properly on occasion, and if you want to book Eurobonus tickets, the same destination options do not even show up as when you would be buying the ticket, even though they (SAS) fly their (via code-share).

I use Norwegian or other Star Alliance partners whenever I can
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