The CEO said just 24 hours ago: The strike threatened to bankrupt SAS. This is what happened. The Scandinavian company filed for bankruptcy the day after its pilots went on strike and is resorting to Chapter 11 bankruptcy assistance in the United States for restructuring. This was announced by the company itself, as Bloomberg reports. The measure will allow the airline to continue flying while it restructures its finances.
Hit the last shot
Yesterday the strike of 1,000 airline pilots began, and today SAS was forced to cancel 78% of departure flights, equivalent to 236 flights. The Chapter 11 process is accessible to companies with assets and businesses in the United States and allows them to continue their operations while they are undergoing restructuring. The group aims to reduce debts of $ 1.9 billion.
Today, July 5, the company canceled 236 flights, which is equivalent to 78% of the scheduled routes, due to the strike.
Shares on the Stockholm Stock Exchange fell as much as -13% to an all-time low of 0.536 kroner. The two largest shareholders in the company are the governments of Sweden and Denmark with a share of 21.80% each in the capital.
SAS isn’t the first airline to file for bankruptcy in the wake of the pandemic, Norwegian Air has filed for creditor protection under Irish Chapter 11 equivalent, as part of a major downsizing that left its far-reaching operations at the end of 2020.