Scandinavian Airlines gets $1.5 billion to survive COVID-19 crisis

Stockholm: Scandinavian Airlines said Tuesday it is getting an aid package worth 14.25 billion kronor ($1.5 billion) after an agreement with its main shareholders, securing the carrier's survival amid the COVID-19 crisis.

The governments of Sweden and Denmark, which own shares in the airline, were partly financing the recapitalization plan, SAS said in a statement.

The aid package was also financially supported by its third main owner, the Knut and Alice Wallenberg Foundation, a Swedish public and private foundation.

The package includes issuing new shares and converting bonds into shares.

In the statement, SAS said that amid the global travel restrictions caused by the pandemic it had taken measures to radically reduce costs as a result of the decline in demand, which is not expected to return to pre-COVID-19 levels before 2022.

The recapitalisation plan is subject to approvals by a general shareholders' meeting and the European Commission.