Scandinavian airline operators SAS to sell bmi stake

Scandinavian travel group SAS AB today said it would sell its holdings in British carrier bmi and two other airlines as it announced a savings package designed to cut costs by £200m (€296m).

SAS said it would sell its stakes in Spanair, bmi and Air Greenland and focus on its flagship carrier, Scandinavian Airlines, as well as its smaller airlines Blue 1, Wideroe, airBaltic and Estonian Air.

SAS holds a 20% stake in bmi, the UK’s second-largest airline.

The package was initially planned to be presented tomorrow, but was moved forward because of market and media speculation on what it contained.

The company said it would divest units outside of its core business, cut back on its central administration and move its Stockholm headquarters, but did not say to where. It was not immediately clear whether any staff would be laid off.