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SAS files for bankruptcy in the US as it fights to survive According to Reuters


© Reuters. FILE PHOTO: A view of SAS Airbus A321 and A320neo planes at Kastrup airport parked on the tarmac, after Scandinavian Airlines pilots go on strike, in Kastrup, Denmark July 4, 2022. TT News Agency / Johan Nilsson via REUTERS

Scandinavian Airlines said on Tuesday (Reuters) that the Scandinavian airline had filed for bankruptcy in the United States, warning that strike action by pilots had affected its financial position and liquidity. the firm.

Wage negotiations between SAS and its pilots collapsed on Monday, triggering a strike that added to travel chaos across Europe as the peak summer break begins.

The company said in a statement Tuesday that it will continue to serve its customers throughout the bankruptcy process, even though the pilots’ strike is affecting its flight schedule.

It said the purpose of the filing was to accelerate a restructuring plan announced in February.

“In order to continue implementing key elements of the plan, SAS and several of its subsidiaries have voluntarily filed chapter 11 in the United States, a legal process for financial restructuring conducted under the supervision of the federal courts of the United States”.

SAS needs to attract new investors and has said that to do that, SAS must cut costs throughout the company, including staff and leased aircraft operating out of service due to Russian airspace. shutdown and slow recovery in Asia.

The airline said on Tuesday its assessment is that it has sufficient liquidity to meet its business obligations in the near term.

However, it added that the strike “has a negative impact on the liquidity and financial position of the company and if prolonged, that impact could become material”.

Nordnet analyst Per Hansen says the app shows SAS needs a fresh start and they expect the strike to last.

“Chapter 11 protection coming soon,” he said. “The leadership and board want to make absolutely clear to all stakeholders that the situation is very serious.”

During the pandemic, several airlines such as LATAM and Philippine Airlines have also applied for Chapter 11 protection in the United States. Philippine Airlines has already exited, while LATAM is expected to exit in the second half of this year.

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