Air France (Paris) is facing a 24-hour strike on October 12. Unions at the company are planning to join a national strike in protest of President Nicolas Sarkozy’s plans to raise the minimum retirement age.
SAS Group (Stockholm) has reached an agreement with the Estonian Government that will result in SAS divesting its 49% stake in Estonian Air (Tallinn). The Estonian Government will provide approximately MSEK 200 in a new rights issue and SAS will convert approximately MSEK 20 in loans into equity. After the rights issue the Estonian State will hold 90% and SAS 10% of Estonian Air. SAS will remain lender of approximately MSEK 70 in loans with a maturity in 2014.
Estonian Air has an option to buy SAS remaining stake and SAS has the option to sell its stake at Fair Market Value after 4 years. The transaction is conditional upon parliamentary approval in Estonia. The transaction is neutral to profit and liquidity of the SAS Group.
SAS will continue its commercial cooperation with Estonian Air.
Copyright Photo: Christian Volpati. Estonian Air’s smart-looking Boeing 737-5L9 ES-ABI (msn 29234) taxies across the ramp at Paris (CDG).