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SAS completes the sale of Wideroe

Scandinavian Airlines-SAS (Stockholm) today announced it has completed the sale of subsidiary Wideroe (Widerøe’s Flyveselskap AS) (Oslo).

The airline issued this statement:

On May 3, 2013, SAS announced that an agreement had been signed to sell 80% of the shares in Wideroe’s Flyveselskap AS (Wideroe) to an investment group consisting of Torghatten ASA, Fjord1 AS and Nordland Fylkeskommune. The transaction was expected to be completed during September 2013.

SAS has today (September 30) transferred 80% of the shares in Wideroe to the investment group. The total transaction proceeds amount to approximately SEK 2 billion, including aircraft related transactions, which will reduce SAS’ net debt by a
corresponding amount. Approximately half of the total transaction proceeds are strengthening SAS’ cash and cash equivalent position. In addition, the transaction will reduce the previously announced negative effect on SAS’ shareholders’ equity from amended reporting rules for pensions by approximately SEK 1 billion.

SAS has reserved MSEK -300 in the second interim report 2012/2013 resulting from the sale of Wideroe. The final capital result will be reported in the fourth interim report 2012/2013.

SAS will divest the remaining shares in Widerře during 2016.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Wideroe’s (Widerøe’s Flyveselskap AS) Bombardier DHC-8-402 (Q400) LN-WDF (msn 4244) is portrayed at a stop at Torp (Sandefjord).

Wideroe:

SAS Group sells its 80% share in Widerøe

SAS Group (Scandinavian Airlines-SAS) (Stockholm) has today signed an agreement to sell 80% of its shares in Widerøe Flyveselskap AS (Bodo and Oslo) to a group of investors consisting of Torghatten ASA, Fjord1 AS and Nordland Fylkeskommune (together referred to as the “Investor Group”). SAS will retain a 20% share in Widerøe but will have an option to transfer full ownership of Widerøe in 2016.
The sale of Widerøe represents an important step in the improvement of SAS’ financial position with a significant reduction of SAS’ financial leverage. SAS and Widerøe will have a continued close commercial cooperation after the transaction, with Widerøe remaining an important regional partner to SAS.

As part of the transaction, SAS will sell seven Bombardier DHC-8-402 (Q400) aircraft to Widerøe which are currently leased by Widerøe from SAS. The loans related to these aircraft will be transferred to Widerøe. Additionally, three aircraft, currently not in use, has been sold from SAS to a lessor and subsequently leased by Widerøe.

SAS will receive approximately SEK 2.0 billion in conjunction with the divestment of Widerøe, including the aircraft-related transactions, and up to SEK 2.3 billion in total proceeds in the case of a full divestment in 2016. The total proceeds will reduce net debt by the same amount.[1] Additionally, the transaction will reduce the previously announced negative impact on equity of amended reporting rules for pensions by approximately SEK 1.0 billion from SEK 7.9 to SEK 6.9 billion.

The sale of Widerøe is expected to result in a limited capital loss for SAS of approximately SEK 230 million in case of a full divestment in 2016.

“This divestment is in line with the 4Excellence Next Generation strategy to build a long-term financially strong SAS. We are pleased to have developed Widerøe into a successful airline under SAS’ ownership and we look forward to continue strengthening Widerøe’s position as the leading regional airline in Norway together with the new owners”, says Rickard Gustafsson, SAS Group
President and CEO.

The transaction is subject to customary closing conditions, including clearance from Norwegian competition authorities, and is expected to close in September 2013.

Copyright Photo: Ton Jochems. Bombardier DHC-8-402 (Q400) LN-WDC (msn 4071) is seen on the ramp at Trondheim above the Arctic Circle.

Widerøe:

Route Map:

Widerøe is awarded European Airline of The Year

Wideroe (Widerøe’s Flyveselskap AS) (Bodo and Oslo) has been selected as the European Airline of the Year by the European Regions Airline Association.

The company has issued the following statement:

Widerøe is awarded European Airline of the Year 2012 by the ERA (European Regions Airline Association). The ERA Airline of the Year Award was established in 1991 and aims to recognize excellence and achievements of intra-European airlines. The price is awarded every year on the base of quality, economy and position of the airline.

This year Norwegian Widerøe went all the way to the top. Feedback from the judging panel on the gold medal is that Widerøe is a well-managed airline that remains predictable at a top level in unpredictable surroundings.

This is a great honor and recognition of the work and effort put in by all Widerøe’s employees, states Managing Director in Widerøes Flyveselskap, Lars Kobberstad. It is particularly exciting to win an award rewarded by the industry itself, continues Kobberstad.

ERA’s Airline of the Year Award is presented every year. Competition is fierce between the various airline members of the European Airline organization. Widerøe has previously won both bronze and silver, however this is the first time the company wins the gold medal and is awarded Airline of the Year in Europe.

Of course it is fantastic for a small Norwegian company to go all the way to the top, states Kobberstad, and promises that there will be a big celebration when he returns to Norway with the trophy.

In his Dublin speech Thursday night, Director General of ERA Mr. Mike Ambrose stated that the judging panel was impressed by Widerøe’s performance in many aspects. In particular Widerøe’s ability to excel in all operational and financial parameters impressed the judging panel.

The judging panel also points out Widerøe as a truly regional airline and even if the airline operate in challenging weather conditions, most of the measures of performance are at the top.

Lars Kobberstad approach is slightly more humble; -This is truly a great acknowledgement. However, new challenges present itself every day and we cannot afford to slow down in our efforts to increase the quality and efficiency of our service offering. This is never the less an important step towards fulfilling our vision of becoming the leading regional airline company in Europe.

In other news, the growing airline is acquiring three additional ex-SAS Bombardier DHC-8-402s (Q400s).

Wideroe: