September 26, 2022

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You want the Norwegian government’s acquisition of SAS – E24

The stake in SAS has fallen by about 80 percent since Norway sold the company in 2018. Now is the time to get back in, says Rødt’s Mimir Kristjsonon.

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– I want Norway to buy into SAS, Christianson tells E24.

The move is up in the air after a sharp decline in the stake in SAS recently.

DNB Markets shaved its target price for SAS stock by 60 percent a week ago. The airline brokerage house thought Facing restructuringIt will go bankrupt if you don’t.

On Tuesday this week, SAS announced another comprehensive savings program.

SAS Forward aims to reduce annual costs by 7.5 billion Swedish kronor, including the four billion long-earned since the previous program in 2020.

Already in October, CEO Anko van der Werf stated that The company is struggling to survive.

Mimir Kristijson believes that the government should do what it can to keep the ancient giant alive.

– The government wrote in the Hurdal platform that it will open its doors to purchase in companies of strategic importance to Norway, and that is exactly SAS, he says.

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– I need a company like SAS

Christianson believes that the Norwegian acquisition of the Scandinavian airline will have many ups and downs. He notes, among other things, that competition from low-cost airlines is heating up, and that the government alternative in SAS may become more important than before.

– It was the Norwegian who started this race in Norway, but we also have Wizz Air and Ryanair knocking on our door. Then we also need a company that can operate in an appropriate manner, such as SAS, Christianson says.

Norway sold SAS in June 2018. The state-owned shares corresponded to 9.88 percent of the total number of common shares in SAS.

In June 2020, then Prime Minister Erna Solberg confirmed that Sweden and Denmark wanted Norway back as owner of SAS. However, Solberg rejected the idea, saying the government would treat SAS, Norwegian and Widerøe on an equal footing.

– As far as I know, the Danes and the Swedes want us to buy ourselves. This is a golden opportunity to “make SAS great again,” as we can rebuild an up-to-air company that doesn’t use its own employees and doesn’t compete on all the lower wages and operating costs, says Krissjohnson.

– In addition, I must say that it is a good “business opportunity” now. Christianson says the opportunity presents itself now that SAS is so shaky.

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The government is closely following the flight

Communications consultant Emil Bremenes at the Department of Trade and Industry wrote in an email that assessments of where the state might buy will be part of the work on the new ownership report.

The government is closely following developments in the field of aviation. Bremenes writes that to help aviation in a difficult situation, the government has taken measures that will ease the severity of the entire industry, including tax breaks and more general support schemes such as wage compensation.

E24 asked the Department of Commerce and Industry whether the government had considered the consequences of a possible bankruptcy of SAS. The ministry did not respond to this.

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– The government is now working on an aviation strategy that will enter, among other things, into the development of aviation during the pandemic and where the goals and ambitions of the government will emerge, Bremenes wrote.