SAS Scandinavian Airlines filed for Chapter 11 in the United States.
SAS Group has filed for Chapter 11 reorganization in the US due to strike action by pilots.
The strike by SAS pilots adds to the travel chaos in Europe as the peak summer vacation period starts.
The company said in a statement that it hadvoluntarily filed for Chapter 11 in the US, a legal process for financial restructuring.
The airline said that its operations and flight schedule will not be affected by the filing.
SAS pilots in Europe walked out on Monday due to low pay and working conditions, as well as discontent with the decision by the carrier to hire new pilots to fill vacancies at its subsidiaries, SAS Link and SAS Connect, rather than re-hire former company pilots.
Around 30,000 passengers are expected to be affected by the cancellation of 50% of SAS flights.
The strikes are devastating for SAS and puts the company's future together with the jobs of thousands of colleagues at stake.
He said that they have been working hard to improve their financial position.
The ongoing strike has made an already challenging situation even more difficult. The Chapter 11 process gives us legal tools to accelerate our transformation while allowing us to operate as usual.
SAS needs to attract new investors and in order to do that it must slash costs across the company, including for staff and for leased planes that are not being used because of a slow recovery in Asia.
All Rights Reserved © 2024
