• Sweden edition
 
SAS in last minute bid to avoid collapse: report

SAS in last minute bid to avoid collapse: report

Published: 11 Nov 2012 10:42 GMT+01:00
Updated: 11 Nov 2012 10:42 GMT+01:00

The troubled airline has been the subject of persistent bankruptcy rumours in recent weeks which intensified further after the company delayed the publication of its quarterly report, which is set to be published on Monday.

According to a report in the Expressen daily, intensive last minute discussions are ongoing within the Swedish government over how the immediate situation, and the prospect of bankruptcy, can be managed.

The loss-making airline has been told by its banks that state guarantees from major shareholders - Sweden, Norway and Denmark - are required before an extension is granted on a 4.7 billion kronor ($700 million) credit facility.

According to a report in the Dagens Industri business daily on Friday, the three Scandinavian countries this week sought EU approval for the guarantees.

According to a report in the Dagens Nyheter daily on Sunday, SAS staff are set to be presented with an ultimatum to take a pay cut or face losing their jobs.

The pay cuts will apply to salaries, holiday entitlements and a requirement for longer working hours, according to the newspaper's source.

The company has said that it intends to present a concrete plan for future operations in conjunction with the presentation of its third quarter report on Monday.

The airline's problems have persisted in recent years and the firm has struggled to compete with competitors. High salaries, pensions liabilities and an ageing fleet have all contributed to the parlous state of the company.

The last time the firm's problems came to a head, in 2010, cabin staff backed down and accepted lower pay and conditions.

SAS employs 20,000 staff.

The Local/pvs

Follow The Local on Twitter

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

13:13 November 11, 2012 by Attestupa
C'mon SAS. Everyone pull together. SAS is an airline to be proud of. Don't allow yourselves to be rebranded as Lufthansa.
13:48 November 11, 2012 by Hamsterdam
Are you a joker mate. An airline to be proud of? SAS are no better than Ryanair but with prices of BA. Poor management, poor vision, blind investors.

They should either out up a feasible plan or shut up shop. Plenty of others will take on their routes and offer the passengers much better for much less.
14:35 November 11, 2012 by Eagle63
Nothing beats WestJet !

Proudly Canadian.....
14:44 November 11, 2012 by JohnAndersson
Attestupa has either never actually flown with SAS or has never flown another airline to compare. Hamsterdam is spot on, service like Ryanair at prices like a top tier airline.

SAS has been bordering on bankruptcy for years now and I for one will shed no tears for their collapse. My only hope is that the politicians allow it to happen. Sell off the assets and routes to other airlines - the days of national airlines are over.
17:36 November 11, 2012 by Mb 65
The problem is who will book a flight with then knowing that they might go bust i for one won't be. Another load on the unemployment list to go with the 54,000 immigrants next year.
23:54 November 11, 2012 by philster61
SAAB, SAS...... Sounds like someone needs some outside advise. Anybody want have a go?
08:46 November 12, 2012 by smilingjack
slave labour coming your way right now as I have said over and over. fear not those 500,000,000 Indians arent far away.

Im guessing middle management will be culled. Lower staff will take a serious pay cut and senior management will give themselves a pat on the back and a bonus for "making the tough decisions"!

The company will be right for the taking and one less competitor on the market.
Today's headlines
Pirate Bay founder hacking case starts in confusion

Pirate Bay founder hacking case starts in confusion

The largest hacking case in Danish history began in confusion on Tuesday, after lawyers representing Swedish Pirate Bay co-founder Gottfrid Svartholm Warg accused the prosecution of "unreasonable" tactics. READ  

Swedfund joins H&M in Ethiopia expansion

Swedfund joins H&M in Ethiopia expansion

As H&M expands into Ethiopia, Sweden's state venture capital unit Swedfund has announced that it will back the clothing giant, in a move hoped to create more jobs for local women. READ  

Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

UPDATED: Sweden's main opposition party the Social Democrats has revealed its election manifesto at a press conference at a high school in Stockholm, with a key focus on education and welfare benefits. READ  

Teen run over by train after 'shoplifting' chase

Teen run over by train after 'shoplifting' chase

A teenage boy is in a critical condition after he was hit by a passing metro train in Stockholm. The accident ground rail traffic to a halt, and has police suspecting attempted murder. READ  

Swimrun
Record win at Sweden's tough island race
Photo: Jakob Edholm/ÖTILLÖ14

Record win at Sweden's tough island race

Two Swedes crushed last year's course record at the Swimrun world championship in Stockholm's archipelago on Monday. READ  

Sweden reveals Academy Award submission
Swedish director Ruben Östlund on set. Photo. TT

Sweden reveals Academy Award submission

The movie set to represent Sweden at the 2015 Academy Awards was revealed on Monday, a film that has already won awards abroad. READ  

Amphetamines
Hidden forest drug stash leads to prosecution

Hidden forest drug stash leads to prosecution

A 53-year-old man has been prosecuted after police in western Sweden made one of their largest drug seizures in the area. READ  

Man shot dead in hunting accident
Photo: Hunter Desportes/Flickr

Man shot dead in hunting accident

UPDATED: Police in northern Sweden say a man was killed on Monday morning after what they described as a "hunting accident". READ  

Pirate Bay Swede's trial set for final stage

Pirate Bay Swede's trial set for final stage

The mother of Swedish Pirate Bay co-founder Gottfrid Svartholm Warg has told The Local about her son's "suffering" in jail ahead of the final stages of his trial. READ  

Suspected Ebola case ruled out in Sweden
Photo: Fredrik Sandberg/TT

Suspected Ebola case ruled out in Sweden

UPDATED: Officials at a Stockholm hospital reported that they had found a suspected case of the Ebola virus on Sunday night. But the case was dismissed on Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Politics
How immigration became a key election issue
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Gallery
See the destruction from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

746
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se