In October 2020, the Commission took a decision approving a recapitalisation of SAS amounting to approximately €833 million (SEK 9.5 billion) by Denmark and Sweden under the COVID-19 Temporary framework. Following the annulment of the decision by the General Court, the Commission approved the recapitalisation again in November 2023. Despite the support, SAS did not manage to turn operations around and had to file for collective insolvency proceedings in the second half of 2022. As a result, SAS had to reorganise its business and Sweden and Denmark submitted to the Commission a restructuring plan supported with State aid.
The plan sets out a package of measures for streamlining SAS' fleet, optimising its network, reducing costs, financial burdens and increasing revenues. The plan, which is supported with new aid from Sweden and Denmark through various instruments and different amounts, is necessary to make SAS viable again, following the slower than expected recovery of the air travel demand since the outbreak of the coronavirus pandemic and the adverse effects of Russia's invasion of Ukraine.
The Commission assessed the State aid under its Guidelines for rescuing and restructuring non-financial undertakings in difficulties (‘R&R Guidelines'). Giving the contribution to the development of air transport within, to and from Scandinavia, securing air connectivity that would otherwise be at risk with remote islands and other locations as well the international connectivity, the effect on avoiding hardship and market failure by enabling the return to viability through the implementation of its restructuring plan, the amount of aid, the burden sharing with creditors, and the safeguards proposed, the Commission has considered the aid to be compatible.
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