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Scandinavian Airlines SAS filed for bankruptcy on pilot strike

StockholmScandinavian airline SAS has filed for bankruptcy protection in the United States to accelerate restructuring plans, a pilot strike on Tuesday Warned. It affected its financial position and liquidity.

SAS (SASDF) Wage negotiations betweenand its pilot collapsed on Monday This, which caused a strike, is added to thetravel turmoilacross Europe as the peak summer vacation begins.

This has accelerated the airline's decision to apply for Chapter 11 bankruptcy protection in the United States, airline chief executive officer Anko van der Werff said at a press conference on Tuesday. rice field.

The company said in a statement that pilot strikes are affecting flight schedules but will continue to serve customers throughout the bankruptcy process.

He said the purpose of the submission to the US federal court was to accelerate the restructuring program announced in February.

"Through this process, SAS aims to reach agreements with key stakeholders, rebuild company debt, restructure aircraft and make significant capital injections. "We have," SAS said in a statement.

He added that the process in Chapter 11 is expected to be completed in 9-12 months. After the filing was announced, SAS stocks fell 6% and fell 2% at 0728 GMT (0228 a.m. ET)

during the pandemicAvianca (AVH), Aeromexico and Philippine Airlines use the process in Chapter 11 to continue operations with major suppliers such as aircraft lenders. I renegotiated the contract.
Rival Norwegian Air Shut emerged last year frombankruptcy protectioninvolving Dublin and Oslo courts.

"That doesn't mean anything for normal operation. They're trying to repair the motor while driving," Sidbank analyst Jacob Pedersen told Reuters about SAS filing. ..

"This is because SAS was unable to achieve the change through negotiations."

SAS needs to attract new investors, which is why Russia It says it needs to reduce costs for the entire company, including staff and leased planes that are idle due to airspace closures and slow recovery in Asia. ..

The airline said on Tuesday that its valuation was sufficient to meet its business obligations in the short term with a cash balance of SEK 7.8 billion ($ 756 million).

SAS said the talks with lenders about raising another $ 700 million to support the business during the restructuring period were "extremely advanced."

However, the strike added that "it has a negative impact on the company's liquidity and financial position, and over time, such impacts can be significant."

Nodenet analyst Per Hansen said the application has shown that SAS needs to make a fresh start and believes the strike will be protracted.

"Chapter 11 protection is early," he said. "Management and the board absolutely want to make it clear to all stakeholders that the situation is very serious."