SAS Risky?

[Danish viking]

They are only missing a deal with the danish cabin crew but they are preparing for a bankrupcy so all planes are having enough fuel onboard so they can return home.

[Globaliser]

Latest update of Reuters story on this, timed at 1031Z today (Monday):-

Airline SAS aims for final union deal in survival fight

 

(Reuters) - Scandinavian airline SAS on Monday sought a deal with the last union opposing its plans for severe cost cuts aimed at avoiding bankruptcy and securing the airline's long-term future.

 

SAS, half owned by the governments of Sweden, Denmark and Norway, said it had secured a deal with seven of eight unions on wage cuts, working schedule changes and pensions and had only the cabin crew union of Denmark to go.

 

The airline, hit by competition from lower-price rivals, last week announced plans to cut some salaries by up to 17 percent and lower overall staff to about 9,000 from 15,000 as it shrinks its business. That prompted media speculation SAS faced bankruptcy if it failed to get unions to agree to the cuts.

 

But even if a deal is reached, analysts have questioned whether the airline can survive on its own in the long term as it faces competition from Ryanair and regional rival Norwegian Air Shuttle, both of which have lower operating costs.

 

...

[Danish viking]

The danes are on board now according to danish newspaper JP.

 

Now we can just wait for the official announcement.

[Globaliser]

I've seen some comment (for whose accuracy I can't vouch) that when the unions have all signed up, management will need to go back to the board to get authority to go to the lenders to get their sign-off on the new loans.

 

Also, one thing that I haven't seen any mention of so far is the stance that the European Commission is taking to this, as there's so much government money going into these new loans. Will there be a State aid investigation? That could yet scupper the rescue.

[Danish viking]

As far as i know the governments will only cover the loan, so they are only giving Swedbank and Nordea the money if SAS goes bankrupt.

 

Yes its correct that Swedbank and Nordea has to approve the plan but I don´t think that SAS would go to the meeting with anything less than what they are expecting.