SAS files for bankruptcy protection as pilot strike grounds flights

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Scandinavian Airlines has filed for bankruptcy protection as it warned a crippling pilots’ strike was deepening its long-running financial troubles.

SAS on Tuesday filed for bankruptcy protection in the US, a process that will allow it to continue flying while it restructures its finances.

Anko van der Werff, the airline’s chief executive, said a strike by pilots that began this week had accelerated the decision to enter the bankruptcy process after it led to a wave of flight cancellations.

“The strike has a negative impact on the liquidity and financial position of the company and, if prolonged, such impact could become material,” SAS said in a statement.

Van der Werff, a day earlier, had warned pilots that the strike was “reckless” and would put “the company’s future, together with the jobs of thousands of colleagues, at stake”.

SAS is one of a handful of airlines to enter bankruptcy following the disruption caused by the pandemic.

Norwegian Air Shuttle filed for protection from creditors under the Irish equivalent of Chapter 11 as part of a wide-ranging downsizing that saw it abandon its long-haul business in late-2020.

Latin America’s largest carrier LatAm filed for bankruptcy protection in New York as the world largely stopped flying in spring 2020.

Source: Financial Times


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