SAS Group abandons sale of Spanair

As communicated in the SAS Group Strategy plan, Strategy 2011, SAS has been in a process of divesting Spanair. The target for the SAS Group has been to finalize this process before the end of second Quarter 2008. Due to the challenging market conditions in the Spanish aviation market coupled with record oil prices and pressure in the financial sector SAS has not been able to reach its targeted terms and conditions on the divestment.

SAS CEO Mats Jansson comments:

"The value we could realize does not reflect the underlying value in Spanair. Spanair is a company with a competitive cost position and is the second largest carrier in the large Spanish market.

“We have done a very thorough evaluation and have concluded that we will abandon the current sales process and continue as a shareholder committed to ensure a profitable Spanair."

Spanair will be reported a continued business in the SAS Group accounts.