Scandinavian Airline SAS Declares Bankruptcy as Pilots Hold Strike

Scandinavian Airlines, often known as SAS—the national airline of Denmark, Norway, and Sweden—filed for Chapter 11 bankruptcy protection in the US on Tuesday.

SAS, in a statement published in Forbes, said it has attributed service interruptions to the pilots union. 

“SAS will continue to serve its customers as normal, although the strike by SAS Scandinavia pilots’ unions will impact the flight schedule,” SAS said.

More than half of the SAS’s scheduled flights are being canceled, adding to the numerous travel disruptions already taking place throughout Europe.

According to the Stockholm-based SAS, filing for Chapter 11 will enable it to restructure its finances under a plan dubbed “SAS Forward.” 

SAS also stated that it is in “well-advanced discussions with a number of potential lenders” to obtain additional debtor-in-possession financing for up to $700 million to support its operations during this court-supervised process. 

A specific form of bridge financing for companies undergoing a Chapter 11 restructuring is debtor-in-possession financing.

Anko van der Werff, CEO of SAS, described the strike as making the already challenging situation “tougher”, as he urged pilots’ unions to end it. 


© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.