Scandinavian Airlines (SAS) has announced that pilot strikes have ‘severely’ impacted the company’s liquidity, threatening its ability to secure the additional capital needed to undergo financial restructuring.
The 11-day pilot strike has caused more than 2,550 flight cancellations which has affected over 270,000 passengers and has so far cost $123 million, the airline announced in a statement dated July 14, 2022.
“The current pilot strike, with the consequential liquidity drain, amplifies the already dire situation. Progressing SAS FORWARD is essential in order for SAS to survive and to make the Company strong and investable again,” Erno Hildén, executive vice president and CFO, said.
“The strike is putting the success of the Chapter 11 process and, ultimately, the survival of the Company at stake,” said Anko van der Werff, president and CEO.
After 11 days of strike action, SAS has resumed negotiations with unions to end the strike, which grounded around 80% of the carrier’s planes during the peak travel season, the company said on July 11.
On July 5, 2022, Scandinavian Airlines (SAS) voluntarily filed for Chapter 11 bankruptcy protection in the United States in order to make progress with cost-cutting measures and accelerate its SAS Forward restructuring plan. The carrier aims to secure additional debtor-in-possession financing for up to $700 million to support its operations through the restructuring process.