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SAS Scandinavian Airlines reportedly close to bankruptcy: local media

12-Nov-2012 10:27 AM

SAS Scandinavian Airlines is reportedly close to bankruptcy with staff set to be advised to take salary cuts or risk losing their jobs, according to reports by The Local Sweden, Expressen, Dagens Industri and YLE. Danish, Norwegian and Swedish governments reportedly sought EU approval for state guarantees to secure an extension to a EUR550 million credit facility with six banks including Nordea, SEB, Swedbank, Danske Bank, DNB, and Royal Bank of Scotland. EU competition and state aid spokesman Antoine Colombani said it has had informal contact with the Scandinavian governments but has not received a formal request to permit state aid. Mr Colombani said, “Of course, any state aid must be notified through and approved by the European Commission. Once we receive a notification of course we will examine what these governments want to do, but I cannot give you any indication on timing at this stage.” SAS, which currently employs approximately 20,000 staff, is to release its interim report on 12-Nov-2012.