SAS ‘to cut wages’ as airline industry suffers

SAS 'to cut wages' as airline industry suffers
Scandinavian airline SAS is set to slash employees wages in an attempt to stem losses, according to Danish reports. An SAS spokeswoman has denied the rumours.

Danish financial newspaper Börsen quotes a source in SAS’s management saying that the company wants to persuade employees to accept pay cuts of 10 to 15 percent, to dampen the effect of rising fuel costs and structural changes in the airline industry.

But Elisabeth Manzi, the company’s PR chief, has said the report is wrong:

“This is incorrect information. The SAS management has absolutely no plans to do this,” she said.

Börsen’s source said a meeting would be held after the presentation of the company’s half-yearly report on Thursday, at which the management would present unions with the wage cut demands.

Manzi denied that such a meeting was planned:

“I can’t say whether other meetings have been called, but there is no meeting to discuss this issue,” she said.

Hard-pressed SAS managers are struggling to keep costs at the airline under control. The company is expected to make a big loss in 2008. The airline is suffering along with the rest of the industry from high fuel prices and overcapacity. Many analysts have predicted that SAS will find it hard to survive as an independent company in the long term.