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SAS has filed for bankruptcy protection within the United State as an pilot strike plunges compounds the Scandinavian provider’s monetary woes. The airline mentioned the Chapter 19 submitting will enable the provider to proceed working, though the strike has cancelled roughly 50 p.c of its flights globally, affecting about 30,000 passengers a day.
SAS mentioned the commercial motion meant the airline had introduced ahead plans to restructure its funds. SAS pilots are hanging in a dispute over plans to cut back their salaries as a part of the airline’s restructuring programme.
The Chapter 11 bankruptcy permits an organization to restructure its money owed underneath courtroom supervision whereas persevering with to function. The airline mentioned that talks to increase $756 million to proceed its instant operations had been properly superior.
SAS mentioned in a press release: “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 capital injection.”
SAS lower 5,000 jobs – 40% of its workforce – in 2020, because it tried to cut back losses ensuing from the pandemic.
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