Breaking Scandinavian Airlines Files For Bankruptcy Protection In US Amid Pilots' Strike SonDakika-Haberleri.Net
Airline cites strike as reason for negative impact on liquidity, financial position.
Scandinavian Airlines (SAS) announced on Tuesday that it has filed for bankruptcy protection in the US to handle its debt burden, citing a pilots' strike as a reason for the negative impact on the company's liquidity and financial position.
SAS pilots went on strike after failing to reach an agreement on pay and working conditions, which is estimated to result in the cancelation of approximately half of all scheduled SAS flights, affecting around 30,000 passengers per day.
The company stated in a statement that it will continue to serve its customers as normal during the bankruptcy process, however, the pilots' union strike will have an impact on scheduled flights.
"Importantly, we expect to have sufficient liquidity to support our business and meet our obligations in the near term. In addition to SEK 7.8 billion ($744 million) in cash as of June 30, 2022, we are in well advanced discussions to obtain additional financing," the statement said.
"To proceed with the implementation of key elements of the plan, SAS and certain of its subsidiaries have voluntarily filed for chapter 11 in the U.S., a legal process for financial restructuring conducted under U.S. federal court supervision," it said.
Carsten Dilling, chairman of the Board of SAS, said: "As part of that process, SAS has also been preparing for the option to utilize court restructuring proceedings in order to address the Company's financial situation."
The ongoing strike poses significant challenges to the company's ability to succeed with the transformation, Dilling underlined.
"We are confident that the actions we are taking will strengthen SAS' ability to capture the significant opportunities ahead as the industry continues to recover from the pandemic," he added. -