The malaise has been perceptible on the carrier for a long time now SAS Scandinavian Airlines. The company, whose shareholders are the governments of Denmark, Norway and Sweden, has been in a poor financial position for more than a decade. Its situation has been weakened by the Covid crisis, particularly with the fall in traffic to Asia.. And more, the impact of the closure of Russian airspace to its aircraft.
A major airline for more than 75 years, SAS Scandinavian Airlines is today struggling to find its position in an extremely competitive European sky. The airline has therefore launched a rehabilitation plan, SAS Forward. The plan aims to reduce the company's operating costs by SEK 7.5 billion a year. (695 million euros), integrating new aircraft and adjusting the network - in particular with a greater proportion of leisure destinations.
La pilot strike which is due to run from 5 to 10 July, is further weakening SAS' economic position. More than 60% flights were cancelled on Tuesday 5 July and negotiations are at an impasse. SAS regrets the action, adding that the strike "is having a negative impact on the company's liquidity and financial position and, if it continues, this impact could become significant."
Effective implementation of Chapter 11
In this context, SAS Scandinavian Airlines therefore announced on 5 July that it was filing for Chapter 11 bankruptcy protection in the United States.. Chapter 11 will enable the company to accelerate and simplify the stages of its global SAS Forward business transformation plan.
Through this process, SAS aims to reach agreements with key stakeholders, restructure the company's debt obligations, reconfigure its aircraft fleet and emerge with a significant injection of capital. SAS expects to emerge from Chapter 11 in the US court system within 9 to 12 months.
No change for the passenger
The carrier specifies that its operations and flight schedule are not affected by the filing of Chapter 11. SAS will continue to serve its customers as usual. All services are therefore operating - notwithstanding the current strike. Linancial obligations such as ticket refunds to customers are not affected..
" The process we have begun will enable SAS to continue its legacy of over 75 years of integration with Scandinavian infrastructures and companies.. We are convinced that the measures we are taking will strengthen SAS's ability to seize important opportunities in the future", stated Carsten Dilling, Chairman of the SAS Board of Directors.
From his side, Anko van der Werff, CEO of SASChapter 11, " SAS would continue to restore the network connectivity, products and service our customers expect. We will continue to do so throughout this process and beyond. I am convinced that this process will enable us to become an even better airline for our customers and a stronger business partner".
He went on to say that he wanted to "urge the SAS pilots' unions to end their strike and engage constructively in this process".
