– Positive for SAS – E24
The SAS share soared after a Danish press conference on Friday. – That Denmark is interested in spitting in more money is positive for SAS, says the pilot association.
Earlier this week, Sweden announced that the country is not a long-term owner of the crisis-stricken airline SAS.
On Friday, Denmark’s Minister of Finance Nicolai Wammen was able to say that a broad majority in the Folketing wants to increase Denmark’s stake in SAS to between 22 and 30 percent, no SAS interprets as a declaration of confidence.
Both Sweden and Denmark are willing to convert billion-dollar debt into shares in SAS, and thus contribute to solving the airline’s debt problems. But to solve these challenges, other creditors must also contribute.
Norwegian SAS pilots are satisfied with the signals from Denmark, which is one of many necessary contributions for SAS to get through its challenges.
– I am not surprised. Turning debt into shares is almost a compulsion. But the fact that Denmark is interested in spitting in more money is positive for SAS, says Jan Levi Skogvang to E24.
He is the leader of the Parat association SAS Norge Flygerforening.
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– A great workplace
Skogvang points out that Denmark has a strong connection to SAS due to the airport in Copenhagen, which is important for the Danes’ international travel business.
– We also know that Kastrup is very important and a great workplace for Denmark. This may have contributed to Denmark being more eager to contribute even to Sweden, says Skogvang.
SAS has the largest turnover in Norway, the most employees and head offices in Sweden, but nevertheless it is clearly important for Denmark. Kastrup Airport operates internationally hub for Danish business and is an economic engine for the Copenhagen region. Over 1,000 companies operate at and around the airport.
The company København Lufthavne AS, which owns Kastrup, had more than 22,000 employees before the pandemic. The Danish state owns 39 percent of the airport company, which has a market capitalization of more than 80 billion Norwegian kroner.
The Swedish state announced on Tuesday that it is willing to convert debt of around four billion Swedish kroner into shares in SAS, but it will not go in with fresh money after having invested 8.2 billion in SAS since 2009.
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– It’s serious
Earlier this year, SAS presented a rescue plan that will cut costs sharply. The unions have described the negotiations as very demanding.
The company also wants to convert debt of 20 billion Swedish kroner into shares and raise 9.5 billion Swedish kroner in fresh money.
– The company is undoubtedly in a difficult situation. We have managed to get out of the pandemic with a huge debt that is impossible to live with over time. It’s serious. But the pilots’ role in this is relatively small, says Skogvang.
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That is why Denmark wants to save SAS
SAS may be hit by a strike
This week, the SAS pilots announced a strike from 29 June, after they broke off negotiations with SAS in March on the wage settlement.
At the same time, the employees are also negotiating with SAS on the rescue plan SAS Forward, which will cut the company’s costs by 7.5 billion Swedish kroner by 2026.
Leader Roger Klokset of the Norwegian SAS pilots’ association is pleased that Sweden and Denmark are helping SAS with the high debt.
– The debt burden that SAS now has comes largely from the restrictions that the states introduced during the corona crisis, he says.
He does not want to say anything about state ownership, and says that it will be a political decision that each country must make itself.
– I register that the Danish government sets some conditions for its ownership. I will also demand that SAS follows the Scandinavian models and the rules of the game in the labor market, says Klokset.
Fear racing towards the bottom
– After Sweden said they are not long-term owners, how do you view the signal from Denmark?
– For us, it is important that SAS gets good owners who want to develop the ownership and the company in a sustainable direction, also socially and when it comes to the rules of the game in working life, says Klokset.
– We fear that the management is trying to destroy the rules of the game in working life by putting groups up against each other and making a race to the bottom. Our product suffers a lot from this, and customers feel it in the form of cancellations and constant changes. We think it’s sad and sad, he says.
According to Klokset, the union has been working with the management on a turnaround operation for the culture in the company since November.
Press manager Tonje Bjerve Sund at SAS defends the company’s working life policy in an e-mail to E24.
– The Scandinavian working life model is a cornerstone of our society, and SAS as a Scandinavian company must continue to be part of this, Sund writes.
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These are the cost cuts
– What does SAS want in the negotiations on the rescue plan?
– SAS has been clear since SAS Forward was launched in February that everyone must be on board to reach the goal, both employees, creditors, leasing companies and new owners, says Klokset.
According to Klokset, costs of DKK 7.5 billion include annual savings of DKK 791.3 million among pilots, and a total of DKK 1.2 billion among all employees.
– For the pilots, it is a question of salary, productivity search and that the pilots must work part-time in the winter and max in the summer to follow the travel pattern, he says.
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That is why Denmark wants to save SAS
– A declaration of confidence
On Friday afternoon, SAS sent out a announcement about Denmark’s plans to increase ownership and convert debt into shares.
“We see this as a declaration of confidence and support for our restructuring plan, SAS Forward,” SAS writes in notifications.
The company believes that the support also includes the streamlining SAS believes must be implemented to make the company commercially sustainable and prepare it for the competitive situation after the corona pandemic.
“We appreciate today’s announcement by the Danish government and a broad majority in the Danish parliament that they have plans to support SAS by converting debt and potentially investing new capital, subject to all stakeholders participating in the SAS Forward plan. », Writes SAS.
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