The seatbelt sign is on for Scandinavian Airlines (SAS).
The Stockholm-headquartered Scandinavian carrier voluntarily filed for Chapter 11 bankruptcy on Tuesday, July 5, 2022.
“Over the last several months, we’ve been working hard to improve our cost structure and improve our financial position,” said Anko Van Der Werrf, President and CEO at SAS.
Let’s take a look at what this means for SAS travelers.
SAS in Financial Trouble
Don’t panic if you have near-future travel booked with SAS — the airline will continue to operate as normal as possible throughout the process.
“The chapter 11 process gives us legal tools to accelerate our transformation, while being able to continue to operate the business as usual,” said Van Der Werrf.
Filing for Chapter 11 bankruptcy is part of the airline’s “SAS FORWARD” business plan that involves financial restructuring in the hope that it will come to solve the airline’s financial difficulties.
“I am convinced that this process will enable us to become an even better airline for our customers and a stronger business partner in the years to come,” added Van Der Werrf.
Chapter 11 bankruptcy is not as doom and gloom as it sounds. Through the process, SAS hopes to strike up new agreements with key stakeholders, restructure its debt obligations, overhaul its entire fleet of aircraft, as well as conclude the proceedings in a better financial position than when it started.
Hot Tip: SAS flies nonstop to Copenhagen (CPH), Oslo (OSL), and Stockholm (ARN) from several cities across the U.S. For more info, check out our guide on SAS’s U.S. operations.
The news comes as striking SAS pilots in Norway, Sweden, and Denmark cause passengers to have to find last-minute alternatives for flights across Scandinavia and beyond.
“The ongoing strike poses significant challenges to our ability to succeed with our transformation,” said Carsten Dilling, Chairman of the Board at SAS.
With domestic and international trains selling out, some passengers’ only alternative is to take lengthy overnight buses instead of their original flight which would have taken just 1 hour or even less.
The flag carrier for the Scandinavian countries of Denmark, Norway, and Sweden is filing for Chapter 11 bankruptcy.
It’s hoped that the proceedings and financial restructuring will provide the airline with a much-needed cash injection, as well as overhaul, and improve the customer experience on the ground and in the air.
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