Scandinavian Airlines (SAS) bankrupt due to pilots’ strike | MENAFN.COM

Thursday, 18 August 2022 11:45 GMT

Scandinavian Airlines (SAS) bankrupt due to pilots’ strike


(MENAFN) Scandinavian Airlines (SAS) declared on Tuesday that it has compiled for bankruptcy protection in the US to face its debt burden, mentioning a pilots' strike as a reason for the bad effect on the firm's fluidity and economic situation.

SAS pilots started a strike after they were unsuccessful to reach a deal on salary and working circumstances, which is expected to effect in the cancelation of nearly 50 percent of all arranged SAS flights, impacting nearly 30,000 travelers a day.

The firm announced in a statement that it is going to remain to help its customers as usual throughout the bankruptcy procedure, however, the pilots' union strike is going to have an effect on arranged flights.

The announcement mentioned that “Importantly, we expect to have sufficient liquidity to support our business and meet our obligations in the near term. In addition to SEK 7.8 billion (USD744 million) in cash as of June 30, 2022, we are in well advanced discussions to obtain additional financing.”

It also mentioned that "To proceed with the implementation of key elements of the plan, SAS and certain of its subsidiaries have voluntarily filed for chapter 11 in the U.S., a legal process for financial restructuring conducted under U.S. federal court supervision."

Carsten Dilling, executive of the Board of SAS, stated that "As part of that process, SAS has also been preparing for the option to utilize court restructuring proceedings in order to address the Company’s financial situation.”

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