European Commission determines SAS did not receive state aid

European Commission concluded (09-Jul-2014) a new revolving credit facility (RCF) granted to SAS by Denmark, Norway and Sweden in Dec-2012 "was carried out on market terms and therefore did not constitute state aid within the meaning of EU rules." The three governments financed half of an SEK3.5 billion (EUR377.68 million) RCF in partnership with fellow SAS shareholders and a number of banks from the carrier's previous RCF. The Commission stated: "In its investigation, the Commission found that the three states and the banks were not in a comparable position when deciding to participate in the new RCF, in particular in view of the exposure of some of the banks towards SAS beyond the RCF. However, the investigation has also established the robustness of the underlying assumptions of the business plan. Indeed, the plan has been reviewed by external advisers who confirmed its credibility. The plan is therefore an economically reasonable basis for the three States' decision to participate in the new RCF. Moreover, the risks taken by the States were further reduced as the collateral of the new RCF was sufficient." The Commission found the new RCF "was concluded on terms that a private investor operating under market conditions would have accepted. It therefore procured no undue economic advantage to SAS and did not entail state aid. The new RCF was never used and was effectively cancelled on 4 March 2014." [more - origin al PR]