• 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)

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
National
Anti-Israel graffiti 'not a race crime': Court
Photo: TT

Anti-Israel graffiti 'not a race crime': Court

A teenage boy who painted anti-Israel slogans and symbols on the Concert Hall in Gothenburg has been convicted for the damages he caused, but he walked free from racial agitation charges. READ  

Politics
Israel's ambassador recalled from Sweden
Israeli ambassador Isaac Bachman. Photo: TT

Israel's ambassador recalled from Sweden

Israel has recalled its ambassador from Stockholm "in irritation" that Sweden has officially recognized the State of Palestine. READ  

Entertainment
A closer look at Sweden's rising stars
Swedish actresses Sandra Huldt and Julia Ragnarsson. Julia (right) has been nominated for a Rising Star award. Photo: TT

A closer look at Sweden's rising stars

Like to be ahead of the game when it comes to the next big thing on the silver screen? We find out more about the Swedish nominees for the Rising Star award to be presented at Stockholm's International Film Festival next week. READ  

Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Stockholm 'sinking' oil spill ship safe
The ship was rescued on Thursday. Photo: Swedish Coast Guard

Stockholm 'sinking' oil spill ship safe

After fears a ship carrying around 52 tonnes of oil could sink in Stockholm's archipelago, Sweden's Coast Guard said the vessel had been towed to safety. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Sweden's Foreign Minister is Margot Wallström. Photo: TT

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
Stockholm's shocking take on Halloween
Sport
Top ten quotes from Zlatan Ibrahimovic
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

970
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
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN