SAS applies for Chapter 11 in the United States
2022.07.05 09:26
FILE PHOTO: View of SAS Airbus A321 and A320neo aircraft at Kastrup Airport parked on the tarmac, after pilots of Scandinavian Airlines went on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS
STOCKHOLM (Reuters) – SAS has filed for bankruptcy in the United States, the Scandinavian airline said on Tuesday, warning strike action by pilots had impacted its financial position and liquidity.
It said in a statement it would continue to serve its customers throughout the process, although a pilot strike launched on Monday is impacting its flight schedule.
It said the purpose of the filing was to accelerate SAS’ transformation.
“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.
On Monday, wage talks between SAS and its pilots collapsed, triggering a strike that puts the future of the carrier at risk and adds to travel chaos across Europe as the peak summer vacation period begins.
SAS said on Tuesday its assessment was that it has sufficient liquidity to meet its business obligations in the near term but added:
“The strike has a negative impact on the liquidity and financial position of the Company and, if prolonged, such impact could become material.”
