SAS filed for Chapter 11 reorganization after SAS pilots decided to go on strike.
The carrier said the move will speed up the recapitalization plan. Flight operations will not be affected by the strike, but they are being impacted by it.
SAS hopes to reach agreements with key stakeholders, restructure the company's debt obligations, reconfigure its aircraft fleet and emerge with a significant capital injection through this process. SAS expects to complete its court-supervised process in the US within a year.
It's related.
Alaska Airlines pilots are going to go on strike.
SAS, which is based in Norway, Sweden andDenmark, said that it is in advanced negotiations with potential lenders for up to $700 million in financing.
SAS estimates that a strike by the SAS Pilot Group will cause the cancellation of half of the carrier's flights, impacting 300,000 passengers per day.
The labor union warned on June 16. SAS Link and SAS Connect were accused by the SAS Pilot Group of being used to work around contractual requirements that the airline used to lay off pilots during the Pandemic.
SAS CEO Anko van der Werff stated that the strike puts the airline's future at stake.
He said that the decision to go on strike demonstrates reckless behavior from the pilots' unions.
SAS has $740 million in cash on hand, which will be used to meet obligations as the strike continues.
The carrier wants to reduce costs by $710 million annually, raise at least $900 million in new financing, and reduce or convert debt into equity.
SAS has destinations in Boston, Chicago, Los Angeles, Miami, Newark, San Francisco and Washington. The carrier is part of the alliance
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