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7/5, 10:24 AM (Source: TeleTrader)
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SAS initiates US bankruptcy proceedings

Scandinavian Airlines (SAS) said on Tuesday it filed for bankruptcy protection in the United States in order to accelerate its "transformation by implementing key elements of its SAS FORWARD plan."

The airline noted it filed for Chapter 11, a well-established and flexible legal framework for restructuring businesses with operations in multiple jurisdictions, in an effort to "reach agreements with key stakeholders, restructure the Company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection" and noted it expects to complete the process in 9 to 12 months.

On Monday, SAS' negotiations with pilots broke down after which around 900 pilots in Sweden, Denmark and Norway entered a strike, forcing the airline to cancel half of its scheduled flights.

Baha Breaking News (BBN) / NP