SAS Group, the Nordic region’s largest airline, faces an in-depth investigation by European Union regulators into whether state support by Sweden and Denmark in 2012 may have violated EU state-aid rules.
The European Commission “has concerns regarding the reliability of the business plan, on the basis of which the public shareholders decided to participate” in a new revolving credit facility that was part of a business plan prepared by SAS to help it become profitable again, the EU regulator said in a statement.
The European Low Fares Airline Association, whose members include Ryanair Holdings Plc (RYA) and EasyJet Plc (EZJ), said in February SAS’s credit line of 3.5 billion Swedish krona ($546 million) was illegal state aid because it’s “effectively” guaranteed by the Swedish, Danish and Norwegian governments that own stakes in the carrier.
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