Crisis-hit SAS cuts widespread / News / The Foreigner

Crisis-hit SAS cuts widespread. UPDATED: Struggling carrier Scandinavian Airlines is on a major sales and restructuring drive for survival. SAS presented its SEK 3 billion kroner self-financed annual savings package Monday, announcing it is to divest itself of its Ground Handling company and its subsidiary airline Widerøe - several Norwegian media have since reported Minister of Trade and Industry Trond Giske demanded SAS sell Widerøe in return for help. Moreover, it will sell unspecified properties and assets for SEK 3 billion.

sasbailout, sasbankruptcy



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Crisis-hit SAS cuts widespread

Published on Monday, 12th November, 2012 at 10:18 under the news category, by Michael Sandelson   .
Last Updated on 13th November 2012 at 10:11.

UPDATED: Struggling carrier Scandinavian Airlines is on a major sales and restructuring drive for survival.

A330 in flight
A330 in flight
Photo: SAS


SAS presented its SEK 3 billion kroner self-financed annual savings package Monday, announcing it is to divest itself of its Ground Handling company and its subsidiary airline Widerøe - several Norwegian media have since reported Minister of Trade and Industry Trond Giske demanded SAS sell Widerøe in return for help.

Moreover, it will sell unspecified properties and assets for SEK 3 billion.

The company says administration will be centralised and reduced, outsourcing increased, and pension agreements redefined.

This SEK 1.5 billion restructuring will be self-financed by savings, with the entire SEK 3 billion bank and main stakeholder-backed savings plan dependent upon full implementation and completion.

SAS' credit is also extended to SEK 3.5 billion up to 2015 following EU approval of tri-Scandinavian state-guaranteed bank loans, an increase of SEK 400 million.

Seven different banks and the Danish, Norwegian, and Swedish governments are financing this.

"This truly is our 'final call' if there is to be a SAS in the future. We have been given this final chance to make a fresh start and to carry on these fundamental changes,” Rickard Gustafson, President and CEO of SAS, says in a statement.

Today’s move also follows pre and over the weekend news that some 1,000 Danish jobs were to be slashed.

Unions have also rattled their sabres in the face of the up to 15 percent pay cuts, with one shop steward saying SAS could “just forget it”.

He states SAS cannot reduce pay levels without union and member cooperation.

This could scupper the bank and main stakeholder-approved plan, though, possibly leading to the airline’s bankruptcy.

“I know that we are asking a lot of our employees, but there is no other way,” Mr Gustavson declares about Monday’s package announcement, “I hope that our loyal and dedicated employees are willing to fight for the survival of SAS and for our jobs.”

SAS carries approximately 27 million passengers a year.



Published on Monday, 12th November, 2012 at 10:18 under the news category, by Michael Sandelson   .
Last updated on 13th November 2012 at 10:11.

This post has the following tags: sasbailout, sasbankruptcy.


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