Airlines Airport Aviation Breaking Travel News Business Travel News People Rebuilding Responsible Tourism Transportation Travel Wire News USA

Scandinavian Airlines SAS files for bankruptcy in US

Scandinavian Airlines SAS files for bankruptcy in US
Scandinavian Airlines SAS files for bankruptcy in US
Written by Harry Johnson

The carrier’s move will definitely contribute to looming travel chaos across Europe as the summer vacation period begins

Scandinavian Airlines today filed for bankruptcy in the United States, saying that a pilot strike announced on Monday had put the future of the airline in serious jeopardy.

According to SAS, the strike by pilots will affect about 30,000 passengers a day.

The Chapter 11 filing will allow Scandinavian Airlines to restructure its debts under court supervision while continuing to operate, although the labor action has grounded almost 50% its flights.

“Through this process, SAS aims to reach agreements with key stakeholders, restructure the company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection,” Scandinavian Airlines said in a statement.

The airline has filed for court-supervised bankruptcy protection in order to push through the ‘SAS Forward’ restructuring program intended to transform the company into a sustainable operation.

The global travel reunion World Travel Market London is back! And you're invited. This is your chance to connect with fellow industry professionals, network peer-to-peer, learn valuable insights and achieve business success in just 3 days! Register to secure your place today! will be taking place from 7-9 November 2022. Register now!

Other foreign air carriers including Aeromexico and Philippine Airlines have used Chapter 11 protection while they worked out their labor contracts and financial arrangements.

The airline industry was seriously hurt by the global COVID-19 pandemic as demand for air travel collapsed.

But recently air carriers and airports have registered some signs of the rebound in air travel.

But all those hopes appeared to be dashed by the summer strikes of the airline pilots and cabin crew.

SAS’ Chapter 11 US filings show that government loans and hybrid bonds make up the most significant unsecured creditor claims against the company.

The carrier’s move will definitely contribute to looming travel chaos across Europe as the summer vacation period begins.

Related News

About the author

Harry Johnson

Harry Johnson has been the assignment editor for eTurboNews for mroe than 20 years. He lives in Honolulu, Hawaii, and is originally from Europe. He enjoys writing and covering the news.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x
Share to...