Problems arise for SAS. This is what Nordea’s head of analysis, Hans-Erik Jacobsen, writes in a recent analysis. Furious customers are annoyed by canceled flights, the company is running a deficit and they have problems with the delivery of new aircraft. Yesterday, SAS’s CEO, Anko van der Werff, presented a new plan to save the airline from large deficits. The plan is to raise SEK 9.5 billion and convert NOK 20 billion into debt for shares. Nordea’s head of analysis, Hans-Erik Jacobsen, thinks the crisis plan is unrealistic. – The plan of the SAS manager to save the company seems impossible to achieve, Jacobsen writes in a recent analysis. He believes the share price will fall to 10 Swedish øre and advises customers to sell the SAS share. Bad odds The airline has almost NOK 30 billion in debt and over NOK 5 billion in negative equity. – So the outlook does not look bright, says Jacobsen. It all depends on SAS succeeding in realizing an ambitious savings plan called “SAS Forward” which came in February. Head of Analysis Hans-Erik Jacobsen at Nordea. Photo: Press photo / Nordea The goal is to save NOK 7.5 billion a year and assume that the employees are part of the team. But the pilot association in SAS has made it clear that they will not sign if 450 dismissed pilots do not get their jobs back. SAS has no plans to do so. In addition, leasing companies are not very interested in converting debt into shares. The next step may be a legal reconstruction of SAS that is similar to what Norwegian did with its creditors a year ago. In this way, SAS can force lenders to the negotiating table. Predicts almost worthless share At the same time as the new crisis plan was presented, the company also presented a new deficit of NOK 1.6 billion. After the stock exchange opened on Tuesday, the SAS share fell by 9 percent. The share has been falling since mid-February, and is at just over 70 øre on Wednesday. Nordea now believes that the share will be almost worthless, with a value of 10 Swedish øre, and advises customers to sell. The Dutch CEO of SAS is clear that SAS is not exposed to an acute risk of bankruptcy because the company has NOK 8 billion in cash. – But a long-term solution must be in place for SAS to stand on its own two feet, he said. Norway can become owner again Head of Research Jacobsen concludes with red numbers for SAS throughout 2022. During the pandemic, SAS received a loan of 1.5 billion from the Norwegian state. If the airline agrees to convert the loan into shares, the state will again become the owner of SAS. NRK has been in contact with the Ministry of Trade and Industry, but they would not comment on the case today.
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Trur shares become almost worthless – NRK Norway – Overview of news from different parts of the country
