SAS reports major loss – gives 1500 notice

Posted by in airlines

SAS will have to save a further $260 million after reporting a half-year loss of over a $130 million.

A completely new cost savings program, amounting to $260 million, is to be introduced by the SAS after the airline reported losses of $130 million for the first half and $137 for the second quarter.

– It is a matter of survival, “said SAS CEO Mats Jansson.

For the second quarter turnover fell by 15.2 percent and the number of passengers decreased by 17.1 percent. For half turnover fell by 12.1 percent and passenger numbers 16.4 percent.
Within the cost savings program Core SAS has so far seven aircraft taken out of traffic and 1 066 full-time employees left the airline. A further 14 aircraft are now out of service and additional savings equivalent between 1 000 and 1 500 full-time employees will be implemented. New collective agreements will be negotiated. It will probably include lower wages in the range of between 10 and 20 percent lower wages for flying personnel. The production will also be optimized and streamlined administration through reduction of staff in the production companies, central staffs, corporate functions and SAS Ground Services and SAS Tech, according to the airline’s press releases.

The evidence suggests that most services removed will be in Norway and Denmark, writes TT according to DN.
– What we are saying is that the production and resources should be used where it is most optimal. In the current situation, we have the lowest costs in Sweden. Now we want to start up a number of negotiations with the unions and after the production will be where it is cheapest, “said Bertil Ternert, information manager at SAS, told TT.
– Today the Swedish cabin staff more sensible than the Norwegian and Danish. Therefore, we can think of to use Swedish cabin crews on some of the lines, “says Claus Sonberg, communications director of the SAS Group to Norwegian NRK, according to TT and E24.