Swedish government shows support to SAS

Swedish government made clear it has not given up on the struggling airliner as SAS AB (STO: SAS, OSE: SAS,CPH: SAS) could today announce that its agreement for non-domestic flights with the Swedish government has been extended through Kammarkollegiet until May 31, 2013. The contract is worth 700 million SEK to SAS. SAS said in a statement that it is proud that the government values its extensive route network, prices and punctuality.

In 2011 Swedish government officials’ most frequent destinations were Brussels, London and Copenhagen. Alltogether 26 government authorities, departments and colleges use SAS’s services. The Swedish government is the largest shareholder in the company with over 20% holding. The Danish and the Norwegian governments own 14.3% each. The fate of these shares has often been speculated.