Sweden to contribute up to 5 billion SEK to airline SAS recapitalization

STOCKHOLM (Reuters) – Sweden’s government said on Tuesday it would participate in the recapitalization of airline SAS with up to 5 billion crowns ($534.8 million) of tax-payer money.

“The government proposes that the parliament authorizes … the state to take part in the recapitalization of SAS to an amount not exceeding 5 billion crowns,” it said in a statement.

The government is the largest shareholder in the airline with a stake of 14.8%. Earlier on Tuesday, SAS announced a 14.25 billion crown plan to shore up its finances against the collapse in air travel during the COVID-19 pandemic.

(Reporting by Simon Johnson, editing by Anna Ringstrom)