SAS says pilot strike in Scandinavia could sink airline
The pilots' strike at Scandinavian airline SAS is costing between $9.0 and $12 million a day and threatens the survival of the already financially troubled company, SAS said on Thursday.
The stoppage, which is now in its tenth day, has already cost roughly 1.0 to 1.3 billion Swedish kronor ($94 million to $123 million), the company said.
Negotiations between unions and management have so far failed to produce a solution.The airline said more than 2,500 flights have had to be cancelled already, affecting 270,000 passengers.
SAS announced it was filing for Chapter 11 bankruptcy protection in the United States on July 5, the day after nearly 1,000 of its pilots walked off the job.
"The strike is putting the success of the Chapter 11 process and, ultimately, the survival of the company at stake," SAS chief executive Anko van der Werff said.
The CEO said the strike also "has a severe impact on our possibilities to succeed with SAS Forward", the cost-saving programme launched by the ailing company in February.
SAS, which employs nearly 7,000 people, mainly in Denmark, Norway and Sweden, is seeking to raise about 9.5 billion kronor in fresh capital.
The airline said it "had sufficient liquidity to meet its business obligations in the near term without accessing new forms of capital" but warned cash reserves "will erode very quickly in the face of a continuing pilot strike".
The pilots walked out last week after negotiations broke down. They are protesting against salary cuts demanded by management as part of a restructuring plan aimed at ensuring the survival of the company, and the firm's decision not to re-hire pilots laid off during the Covid-19 pandemic.
The summer is shaping up to be difficult overall for European airlines and airports, who are faced with staff shortages that is affecting air traffic.
After widespread job losses linked to Covid-19, airlines and airports are struggling to recruit new staff in many countries.
Comments
See Also
The stoppage, which is now in its tenth day, has already cost roughly 1.0 to 1.3 billion Swedish kronor ($94 million to $123 million), the company said.
Negotiations between unions and management have so far failed to produce a solution.The airline said more than 2,500 flights have had to be cancelled already, affecting 270,000 passengers.
SAS announced it was filing for Chapter 11 bankruptcy protection in the United States on July 5, the day after nearly 1,000 of its pilots walked off the job.
"The strike is putting the success of the Chapter 11 process and, ultimately, the survival of the company at stake," SAS chief executive Anko van der Werff said.
The CEO said the strike also "has a severe impact on our possibilities to succeed with SAS Forward", the cost-saving programme launched by the ailing company in February.
SAS, which employs nearly 7,000 people, mainly in Denmark, Norway and Sweden, is seeking to raise about 9.5 billion kronor in fresh capital.
The airline said it "had sufficient liquidity to meet its business obligations in the near term without accessing new forms of capital" but warned cash reserves "will erode very quickly in the face of a continuing pilot strike".
The pilots walked out last week after negotiations broke down. They are protesting against salary cuts demanded by management as part of a restructuring plan aimed at ensuring the survival of the company, and the firm's decision not to re-hire pilots laid off during the Covid-19 pandemic.
The summer is shaping up to be difficult overall for European airlines and airports, who are faced with staff shortages that is affecting air traffic.
After widespread job losses linked to Covid-19, airlines and airports are struggling to recruit new staff in many countries.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.