The economic crisis in SAS has worsened in recent months. The company had to reduce both costs and debt – and bring in a whopping billion in new money.
In the latest stock exchange announcement, the goal was repeated About cost reduction 7.5 billion SEK per year.
SAS management and company advisors discussed with selected stakeholder groups the need to fully participate in the extrajudicial process. In this way, to achieve a competitive cost structure and receive support from financial partners to fully convert debt into equity and acquire new equity.
The administration writes in the letter and continues:
Unfortunately, negotiations so far have yielded limited results and there is still much to be done within SAS management and the Board of Directors can announce the successful implementation of the plan.
The box is emptied at a fast pace
The economic crisis has flared up in SAS since the state owners in Sweden and Denmark came in with new money. In the middle of the pandemic in the fall of 2020, SAS received NOK 14 billion in new money, with states contributing the most. A few months later, SAS also received billions of tax-financed crisis aid from Norway, in the form of loan guarantees.
in early time In the fall of last year wrote DN That ordinary equity is lost again, and that equity consists only of hybrid equity – a form of debt with fixed interest payments.
Through the pandemic, SAS has repeatedly tried to engage the largest groups of personnel in key competencies, but has met with significant resistance, especially from pilots. In two rounds, the Airmen’s Corps said categorically no to large and permanent cuts, agreeing instead to work part-time for a limited time and freeze salaries for one year.
Stuck between SAS and pilots – the top manager warned of the dire consequences of a possible strike at an internal meeting
Distinguished pilots were also instrumental in managing SAS to move forward with plans to create two new airlines with cheaper employee collective agreements – SAS Link and SAS Connect.
Threatened with a general strike
After another disappointing $1 billion shortfall this winter, CEO Anko van der Werve in February of this year announced an all-new rescue plan, SAS Forward, the goal of slashing SEK 7.5 billion in annual costs.
Pilots dismiss delivery teams when SAS cuts 7.5 billion: – It’s a crisis of confidence
As it turns out, SAS will negotiate with creditors – especially the leasing companies that have financed many of the planes – for deep debt reductions.
The pilots are approaching a three-month negotiation deadline, and SAS insists: – Any legal action does not reduce the requirements
However, the pilot corps under the SAS Pilot Group umbrella again said no to the company’s proposal, halting negotiations on new collective agreements on March 29 after only a day of negotiations. Since then, it’s been completely open for when employees want to go to the ombudsman, seek mediation, and be notified of a possible strike.
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