SAS Group would take a SKr200-300 million ($30-45 million) cash writedown, should Spanish operator Spanair go into liquidation.
The company said that risks relating to its financial exposure to Spanair "have increased" owing to the "difficult economic situation" in the Spanish market.
Its stake in Spanair decreased to 10.9% from 19.9% in September following a €56 million capital injection from main shareholder Ieasa into the carrier.
"In the event of Spanair going into liquidation SAS's total exposure is SKr1.8 billion, albeit with a limited negative liquidity effect of SKr200-300 million," it stated in its third quarter earning results.
"If such an event were to occur, it would mean that SAS would still be able to meet its financial preparedness target with a good margin. Discussions are currently under way concerning various structural solutions for Spanair."
SAS remains as a guarantor of certain operational commitments within Spanair's operation amounting to a maximum of €24 million for the period extending no longer than to 30 January 2014. The Spanish carrier has five aircraft on lease from SAS and SAS has an interest-bearing receivable from Spanair of €149 million, which is due 30 January 2014.
SAS also has an €27 million outstanding bridging loan of to the buyers of Spanair, which is due on 31 December 2011.
Source: Air Transport Intelligence news