Airline SAS takes refuge in Bankruptcy Law in U.S.
Scandinavian airline SAS has filed for Chapter 11 bankruptcy in the United States to help reduce debt, the company said on Tuesday, warning that the pilots’ strike had deepened its financial crisis.
Pay negotiations between SAS and its pilots collapsed on Monday, triggering a strike adding to travel chaos across Europe as the peak summer holiday season gets underway for the first time since the coronavirus pandemic hit. COVID-19.
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That hastened the airline’s decision to file for Chapter 11 bankruptcy protection in the United States, CEO Anko van der Werff said, as she sought breathing space to carry out restructuring plans, Reuters reported.
“SAS aims to reach agreements with interested parties, restructure the company’s debt obligations, reconfigure its aircraft fleet and emerge with a significant injection of capital.”
SAS said talks with lenders about another $700 million in financing were “well advanced.”
The airline would continue to serve its customers during the bankruptcy process, although the strike is grounding about half of the airline’s flights, affecting some 30,000 passengers a day.
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Data from flight tracking website FlightAware showed that 232 SAS flights, 77% of those scheduled, were canceled on Tuesday.
The airline, whose main owners are the Swedish and Danish states, said the filing for bankruptcy protection was aimed at speeding up a restructuring plan announced in February.
It expects to complete the Chapter 11 process in nine to 12 months, the company added.
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