The financial situation of the Scandinavian Star Alliance member SAS is very tight. The Swedish state does not want to provide any further financial aid. However, the Ministry of Economic Affairs announced that the debt that one has to the state can be converted into equity.

They do not want to provide additional funds. The government also made it clear that it does not want to remain permanently involved in SAS and will sell the shares. For the ailing carrier, the approval of the Swedish state is still a success, because the conversion of the debt into shares reduces the mountain of debt.

SAS said last week it needed a fresh capital injection of 9,5 billion Swedish kronor for its restructuring plan to work. However, none of the shareholders, including Sweden and Denmark -- the main owners with stakes of 21,8 percent each -- have jumped on the plan.

Only recently it became known that investors should be interested in taking over SAS. However, only a few details are known about this project. Interested parties should also link a possible transaction to savings. It is therefore to be expected that the trade unions could offer resistance. Should a recapitalization of the carrier fail, a possible insolvency can no longer be ruled out.