• 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
Allergic Swedes demand separate metro carriages
Peanut photo Shutterstock

Allergic Swedes demand separate metro carriages

A Swedish allergies association has asked Stockholm public transport officials to set aside certain carriages on the metro for those with allergies - banning nuts, animals, and strong fragrances in transit. READ  

Most Swiss want Sweden to be next door
Flag photo: Shutterstock

Most Swiss want Sweden to be next door

Who said there were hard feelings between the oft-confused Swiss and Swedes? A new survey shows that Swiss people would rather have the land of Abba as their neighbour over anyone else in the EU. READ  

What's On in Sweden
Photo: TT

What's On in Sweden

Plenty of events around Sweden to get your teeth into this weekend, with Sunday capped off with a free visual-music concert in central Stockholm. READ  

Elections 2014
Red-greens stay way ahead of Alliance in polls
The Allliance party leaders. Photo: Mats Andersson/TT

Red-greens stay way ahead of Alliance in polls

While the gap between the red-greens and the Alliance is decreasing, the opposition is still far ahead, scoring 48.8 percent of support in a fresh poll. The Alliance came in at 37.7 percent. READ  

Malmö end 14-year Champions League wait
Striker Magnus Eriksson sprints onto the pitch at the end of Malmö's 3-0 win over Salzburg in a Champions League qualifier. Photo: Björn Lindgren/TT

Malmö end 14-year Champions League wait

Malmö overpowered Salzburg on Wednesday night to become the first Swedish team to reach the Champions League since 2000. READ  

Swedish royals boycott Chuck Berry's ceremony
Queen Silvia. Photo: Henrik Montgomery/TT

Swedish royals boycott Chuck Berry's ceremony

Members of Sweden's royal family have revealed that they boycotted the Polar Music Prize ceremony on Tuesday, due to Chuck Berry's past conviction for human trafficking. READ  

Swedish Tetra Pak factory to shut down
Photo: TT

Swedish Tetra Pak factory to shut down

A Tetra Pak factory in southern Sweden is set to shut down due to a decrease in demand, meaning 250 Swedes risk losing their jobs. READ  

The Local List
Ten false friends in the Swedish language
Photo: The Uppsala Koala

Ten false friends in the Swedish language

Never, ever take the Swedish language at face value. This is a language where "puss" means "kiss" and "kiss" means "pee". And that's just the beginning... READ  

Sami museum hit in suspected tear gas attack
Permanent exhibition on the life of Sami nomads. Photo: Bengt Oberger/Wikipedia

Sami museum hit in suspected tear gas attack

The Sami museum in northern Sweden had to be evacuated after two attackers sprayed an unknown substance which left several people violently ill. READ  

Roma advocate scoops Wallenberg prize
Emir Selimi: The winner of the 2014 Raoul Wallenberg Prize. Photo: Charles L. Sjölander

Roma advocate scoops Wallenberg prize

A Roma man has been hailed as "inspirational" after scooping this year's Raoul Wallenberg Prize for setting up an organization to help stamp out racism against the community. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
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
Blog updates

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 »

 

25 August

The Dollar Store (Blogweiser) »

"A dollar store in Sweden. Blog post: http://t.co/tNuuvcP1q0 #USD #greenbacks #sweden #sverige pic.twitter.com/RHFAYf7U1k — Joel Sherwood (@joeldsherwood) August 23, 2014 There’s a chain here in Sweden called The DollarStore. This name always stood out to me in a country where they don’t use dollars. I went there for the first time this weekend. They actually accepted greenbacks..." READ »

 
 
 
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
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Politics
Sweden elections: How do they work?
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Society
Swedes slam Danes for 'racist' art
Sponsored Article
Find out what gives this Swedish school executive appeal
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
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

738
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