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Scandinavian airline SAS files for bankruptcy in the United States
sas airlines

The airline SAS will be placed under judicial administration in the United States. It is negotiating to finance 700 million dollars. And the administration points the finger at the strike called by the pilots.

In a statement issued this Tuesday, SAS ensures that its operations and flight schedules are not affected by this decision, with the airline maintaining, for now, the planned activity.

The only impact on the activity pointed out by the company is the strike called by the pilots’ unions.

SAS notes that “the strike has a negative impact on the company’s liquidity and financial position and, if prolonged, this impact could become material”.

The airline, which operates mainly in Sweden, Norway, and Denmark, indicates that it is in “advanced discussions” with several potential financiers to obtain financing of up to US$700 million, in order to secure funds for the period in which the northern subsidiary -Americana is under judicial administration.

The announcement of filing for insolvency in the United States comes days after pilots’ unions called for a strike for the summer after negotiations with the company’s management failed.

In the statement released this Tuesday, the executive president (CEO) of SAS highlights the effort that the airline has made to improve the accounts of its operation.

“Over the last few months, we have worked hard to improve our cost structure and improve our financial position. We are making progress, but we still have a lot of work ahead of us and the ongoing strike has made an already challenging situation even more difficult”, commented SAS CEO Anko van der Werff.

Source: With Agencies

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