SAS eyes new start after prolonged bankruptcy

SAS is on the verge of a new beginning after enduring a complex bankruptcy process that has spanned nearly two years, double the expected duration. The European Commission has greenlit the Danish and Swedish states’ participation in the 1.3 billion euro rescue package. Jacob Pedersen of Sydbank sees this approval as a crucial step towards exiting bankruptcy protection, with the final barrier being the Swedish court’s approval, expected to be a formality on July 12. SAS has been preparing for reorganization in Sweden, enabling the launch of a new SAS with new ownership. An investor consortium which includes capital fund Castlelake, Air France-KLM, Lind Invest, and the Danish government will inject 13.2 billion SEK into SAS. The airline’s alliance shift to Sky Team signals a strategic pivot aimed at better profitability after grappling with significant losses, including a 5.7 billion SEK deficit in the latest fiscal year.